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IoT Growth Depends on Vertical Focus
Denise Culver | Research Analyst
As the Internet of Things (IoT) market expands, vendors will find the biggest revenue in the vertical opportunities presented.

The vendors that take advantage of these opportunities will find themselves ahead of the pack.
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Vendors Find Strongest IoT Growth with Vertical Focus
According to some estimates, there will be more than 50 billion devices connected to the Internet by 2020. Interestingly, only about 33 percent of those are expected to be smartphones, tablets, televisions or computers. The remaining 66 percent are expected to be "things" sensors or other types of intelligent devices that control, analyze and monitor various and sundry things on the Internet. In many ways, this accounts for the emergence of the Internet of Things (IoT).

As the IoT market continues to expand and incorporate nearly any company that wants to claim that its Internet-driven product somehow belongs to IoT, the hope is that the definition will soon solidify, and the finalized concept will reject all but those applications that specifically adhere to IoT standards. Once that happens, vendors can begin truly identifying and defining their offerings within a realistic and valuable framework.

It is extremely important that vendors recognize and take advantage of the vertical opportunity that arises from IoT. The first natural instinct will be for vendors to jump on the opportunity for obvious horizontal-focused opportunities. Those will quickly become saturated, however. The true winners in IoT will be those vendors that are willing to spend the time, money and creative investment into developing vertical opportunities.

No doubt, there are issues to address in order for IoT to succeed. Questions are centered around who owns the data and how it will be used. Security, safety and integration will be among the top challenges. Specifically, safety and security, now tightly linked by growing connectivity, will drive further regulation, where previously the impact of security was neglected. Additionally, lack of unified standards prevents widespread adoption, and scalability of solutions is difficult since various vertical industry applications have little to no overlap. Standardization of IoT, specifically the ability for diverse devices and systems to share information and interact, is needed.

Vendors are extremely optimistic about certain verticals especially those like manufacturing, energy and logistics/transportation. These verticals likely will adopt IoT first and create strategies that drive new and improved applications.

Vendors Find Strongest IoT Growth with Vertical Focus examines the vertical markets for IoT, analyzing how vendors are defining the market and how they expect verticals to shape up for IoT. Additionally, it examines the strongest drivers in the market, as well as the greatest challenges the market faces. The report includes a comparative analysis of IoT solutions available and details trends that are likely to occur in the industry over the next 18-24 months.
Sample research data from the report is shown in the excerpts below:
Table of Contents (spiti0815_toc.pdf)
IoT will enable enterprises to create new revenue streams, especially as asset-intensive industries such as those like oil and gas, mining and construction realize the true benefits of IoT in cost savings, predictive maintenance and higher asset uptime. Most important will be the benefit of improving worker safety in complex working conditions. Also, cities will spend more on IoT to improve safety, efficiency, traffic congestion, pollution and other major city problems as they work with existing and outdated city infrastructure.
[click on the image above for the full excerpt]
Companies profiled in this report include: ARM Holdings Plc. (Nasdaq: ARMH; LSE: ARM); Atmel Corp. (Nasdaq: ATML); Bsquare Corp. (Nasdaq: BSQR); Cisco Systems Inc. (Nasdaq: CSCO); Cumulocity GmbH; Dell Inc.; Hewlett-Packard Co. (NYSE: HPQ); PTC Inc. (Nasdaq: PTC); SAP SE (NYSE: SAP); Solair Srl; and Wind River Systems, a wholly-owned subsidiary of Intel Corp. (Nasdaq: INTC).
Total pages: 21
APRIL 2015
NFV Partnerships Underscore Importance of Collaboration
This report examines the market for NFV partnerships and ecosystems, analyzing their features, as well as areas of growth expected in the market over the next two years. The report discusses industry drivers and challenges and analyzes available solutions from 15 leading vendors.
READ SUMMARY
Including table of contents, executive summary, and financial metrics
APRIL 2015
Orchestration for NFV: Specialists Carve Out a Niche
This report examines how smaller and specialist vendors of network equipment and OSS/BSS are approaching the challenge of delivering solutions for NFV orchestration. The report looks at the work that is being done to advance the technical and commercial cases for NFV among operators, and where smaller and specialist vendors fit in. Finally, it suggests how these vendors compete against the network equipment providers and larger OSS/BSS players, and profiles nine leading specialist vendors.
READ SUMMARY
Including table of contents, executive summary, and financial metrics
JANUARY 2015
Leveraging Cloud Mobility to Enhance Enterprise/SMB Services
This report reviews the cloud mobility for enterprise and SMB segments. It goes on to discuss business customer demands and fending off OTT competition. Finally it covers differentiation in enterprise offerings in the market.
READ SUMMARY
Including table of contents, executive summary, and financial metrics
ANALYST
Caroline Chappell
Caroline writes the Services Software Insider research newsletter, addressing the latest developments telecom service delivery technology.
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Caroline Chappell
CONTACT AUTHOR
ANALYST
Denise Culver
Denise is the author of IP Services Insider. She has more than ten years' experience in technology journalism.
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Denise Culver
CONTACT AUTHOR
ANALYST
Tim Kridel
Tim writes for both Mobile Networks Insider and Cable Industry Insider. He has previously covered the wireless and cable industries for a number of research firms, including Heavy Reading.
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Tim Kridel
CONTACT AUTHOR
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