Why IoT Deployments Are Stalled in the Fortune 2000

 IoT Deployments

IoT Deployments

IoT Deployments- Ten to 12 years ago, the incoming IT greenfield buzzword was “cloud.” For the last three or four years, it’s been “IoT.” We’re now moving to “AI,” but “IoT” still has a lot of longevity because there’s so much more to be created, developed and sold in the markets.

There’s now some timely information that puts a stake in the ground describing the current IoT market. A new independent survey released Oct. 9 from VansonBourne and sponsored by Germany-based Software AG found several relevant data points, including the facts that:

  • 25 percent of global Fortune 2000 enterprises rank internet of things deployments as the most important initiative in their organization; yet …
  • 90 percent of those same companies experience barriers to effective implementation due to lack of IoT expertise and skills in-house.

Well, it is true that the IoT is a new sector and that subsequent new tools and skills are needed to make those products and services work. So it follows that this would cause a crisis of sorts in staffing all the needs enterprises will require.

Respondents Were from Current IoT Deployers

The survey queried 800 senior IT and business decision makers at enterprises with a global annual revenue of $500 million and higher across 13 different countries in North America, Europe and Asia Pacific. The respondents came from organizations that were already deploying IoT platforms; the respondents themselves had to have some level of involvement and responsibility for selecting and maintaining those solutions.

A whopping 98 percent of respondents reported that they are already generating some level of return from their IoT investments, yet 89 percent still believe that they must improve their approach to IoT to further improve return on investment.

Most respondents report achieving specific business benefits from their early IoT implementations, with 39 percent citing production capacity increases and higher customer satisfaction and 38 percent making better informed business decisions.  Respondents with the highest rate of satisfaction with their IoT deployments used a hybrid implementation approach–namely buying an IoT platform from an external vendor and then building upon it with customization done in-house, giving them the flexibility they require within the framework of a reliable platform.

According to the survey, the biggest barrier to effective IoT implementation is lack of internal expertise and skills, according to 31 percent of respondents. Other barriers include the inability to manage and process large volumes of data (29 percent), integration issues (28 percent), too many legacy systems (28 percent), inability to scale the network to meet IoT demands (26 percent) and cybersecurity challenges (25 percent).

Hybrid Approach to IoT Implementation

A high percentage of respondents (93 percent) employed some level of hybrid approach to IoT implementation – both buying an IoT platform from an external vendor and then adding customization internally. When evaluating IoT platform vendors, respondents stated that they are looking for an innovative partner (46 percent), with a solution that an be easily integrated across an entire organization (40 percent), with customization that suits their specific needs (39 percent).

“Organizations know they cannot deliver IoT with off-the-shelf packaged applications or with ground-up in-house builds,” Raj Datta, President and Chief Operating Officer of Software AG North America, said in a media advisory. “They need to rapidly deploy IoT in way that is easy to customize, open enough to seamlessly integrate with their existing landscape while remaining proven, secure and robust. This points to the need for a platform with rich functionality out-of-the-box that still gives customers the ability to quickly create business solutions to suit their unique needs.”

According to Datta, global Fortune 2000 customers are on the road to realizing this goal with IoT platforms but still need greater collaboration with their vendor partners to really achieve it.

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Article Credit: EWeek

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