Internet of Things is Blowing up Everything?

September 26, 2016

tam-delloro“Let’s Redefine the Internet of Things: IoT Means Internet of Profits!” That’s the catchy name for the debate panel chaired by Tam Dell’Oro, Founder and President of the Dell’Oro Group. Her panel was Milind Pansare of Aerohive; Tom Ramar of H3 Dynamics; and Will Wise of the IoT Institute.

Tradition service-provider and carrier businesses are shrinking – which can mean declining revenue and declining spending. This panel talked about new opportunities for unlocking new markets and opportunities, such as package delivery, smart connected cars, and convenience businesses – all driven by the Internet of Things.

The challenge is organization dynamics: How quickly can service providers (and all companies, in fact) adapt to these new technologies? They need to understand how it will change their life and their customers’ lives. How it will create threats and opportunities. How it will redefine their business model. In some cases, there may be regulatory issues, like there are with cars and drones.

The IoT is all about devices talking to devices, often using Internet protocols. The IoT can allow startups to disrupt established giants with innovative business models, because the established company can’t threaten its established revenue streams – but a startup or new market entrant can do so.

IoT is also about connecting networks of networks. For example, a car has an internal network with many sensors and local intelligence tied together with its own LAN. In the IoT world, you can leverage that and powerful algorithms to create new capabilities – especially when you link it to other networks, such as the cloud. Then you can add in analytics, AI, and new services.

For service providers, there’s an opportunity to go beyond providing connectivity to leverage those IoT networks at scale to create new managed services.

You don’t know today what you’re going to need for network features and capacity a year from now – so design and architect that way. A challenge, of course, is to measure the ROI for these initiatives.

The panel pointed out that there aren’t good academic models that can be applied to disruptive technologies like the IOT – so the best advice is to deploy and try and learn as you go.

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