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Big Vendors Prepare for the IoT
CARL WEINSCHENK | March 1, 2016
ILS Technology provides the world’s only ready-to-use, off-the-shelf cloud platform to connect enterprise IT systems to the devices and machines on which businesses depend.
Article | June 8, 2021
5 years ago, when we forecasted that the IoT platforms market would have a 5-year compound annual growth rate (CAGR) of 35%, we wondered if our growth projection was unrealistically high.
5 years later, it has become apparent that the forecast was actually too low. The IoT Platforms market between 2015 and 2020 grew to be $800 million larger than we forecasted back in early 2016, resulting in a staggering 48% CAGR.
Comparing what we “knew” back in 2016 to what we know today provides some clues as to why the market exceeded expectations so much. 5 years ago, no one really knew what an IoT platform was, let alone how big the market would be, which business models would work, how architectures would evolve, and which companies/industries would adopt them. The only thing that was “known” was that the IoT platforms market was a billion dollar “blue ocean” opportunity ready to be captured by innovative companies.
Nokia may be best known for cellular phones, but in recent years the Finnish company has focused on networking hardware — the radios and infrastructure that connect cellular devices to the internet. Today, Nokia announced that it’s augmenting its Worldwide Internet of Things Network Grid (WING) with new 5G capabilities, enabling cellular carriers to offer global-scale 5G IoT services to customers without building out their own networks. While that’s a lot of jargon to absorb at once, the gist is that carriers like AT&T and Verizon want to offer business customers the ability to connect small IoT sensors to the internet but don’t necessarily want to spend the money to build the cellular infrastructure the sensors need to communicate. So Nokia offers WING as a global IoT infrastructure, partnering with carriers to sell access on a pay-as-you-go basis.
Artificial intelligence (AI) has existed in the public consciousness for decades. The (mostly) sentient machines playing the villains in Hollywood movies have never been realistic depictions of the technology, but they have left an impression, nonetheless. AI has proved as exciting to the layman as it is to the expert. Usually based in remote data centers, AI is capable of collecting and examining immense volumes of data, generating insights based on analytical algorithms. With varying degrees of autonomy, these capabilities have been put to use streamlining decision-making processes. While AI is often thought of as a product in its own right, it is increasingly intersecting with other parallel trends. Chief among these is the Internet of things (IoT), which enables previously isolated machines to “talk” to one another and, at the same time, generate data that makes new modes of operation a possibility.
The book Design, Launch, and Scale IoT Services classifies the components of IoT services into technical modules. One of the most important of these is Artificial Intelligence (AI). This article is intended to supplement the book by providing insight into AI and its applications for IoT. After many years in the wilderness, AI is back on the hype curve and will change the world again. Or, will it? AI has always been interesting, but what has changed to justify the current hype? There are several contributing factors. The volumes of data that will be produced by many IoT services suggest that this data cannot be managed by humans with traditional analytics tools. Therefore, AI can offer opportunities for IoT services to extract maximum value from the data. IoT cloud platforms are now offering AI services via APIs and application development tools, making AI more accessible for many IoT services. Now, AI can be incorporated without requiring extensive development or excessive costs.
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