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IDC FutureScape: Worldwide
Internet of Things 2017 Predictions
Carrie MacGillivray, VP, IoT & Mobility
IDC Web Conference
November 8, 2016
Logistics
 Submit any questions to webconferences@idc.com
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www.idc.com/idcfuturescapes2017 and click on the “events” tab
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 Join the Conversation in the IDC Community:
http://idc-community.com
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 2
Today’s Speaker
Carrie MacGillivray
VP, IoT & Mobility
@CMacIDC
IDC FutureScape: Worldwide
IoT Predictions
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 3
TIME (MONTHS) TO MAINSTREAM
ORGANIZATIONALIMPACT
Asingle
department
orabusinessunit
Multiple
departments
orbusinessunitsCompanywide
0-12 12-24 24+
1
2
3
4
5
6
7
8
9
10
Open data
platforms
emerge
LPWAN
conflict
Cycle time
improve-
ments
Blockchain
realized
Security
evolves
Industry
growth
IoT/IT services
The
edge
Smart City
assets
Analytics and
IoT collide
1
2
3
4
5
6
7
8
9
10
By 2018, the "open data platform" will emerge as the next frontier in
platform discussions, causing confusion for enterprises that already
invested in IoT platform solutions.
Despite hype on the benefits of low power WAN, such as LoRa and
Sigfox, its unlicensed spectrum and lack of QoS causes companies to
focus it on non-critical applications – with 3% deploying by 2018.
By 2018, investments in operational sensing through IoT and situational
awareness via analytics will deliver 30% improvements in critical process
cycle times.
By 2019, as IoT adoption grows in major industry, government and
consumer sectors, 20% of all IoT deployments will have basic levels of
blockchain services enabled.
By 2019, more than 75% of IoT device manufacturers will improve their
security and privacy capabilities, making them more trustworthy partners
for technology buyers.
In 2017, connected vehicles, insurance telematics, personal wellness, and
smart buildings will be four IoT use cases in the spotlight across all
worldwide regions, accounting for $96B spending.
As adoption of IoT grows, 75% of IoT adopters will turn to outside firms
for help in strategy, planning, development, implementation, and/or
management of these initiatives.
By 2019, at least 40% of IoT-created data will be stored, processed,
analyzed, and acted upon close to, or at the edge of, the network.
By 2019, 40% of local and regional governments will use IoT to turn
infrastructure like roads, street lights, and traffic signals into assets
instead of liabilities.
By 2019, all effective IoT efforts will merge streaming analytics with
machine learning trained on data lakes, marts, and content stores,
accelerated by discrete or integrated processors.
@CMacIDC
Drivers for IoT in 2017 and beyond
 DX – technology-centric transformation altering business and society
 New funding models – accelerating disruption and innovation
 Everything, Everywhere – the rise of computer-based intelligence
 Disruptive Fault lines – security, privacy and regulation
 Shifting Economics – data as digital capital
 Materialization – revolutionizing industrial and commercial processes
 Platform Economy- the ecosystem battle for scale
For additional details on the above Drivers, please refer to report:
IDC FutureScape: Worldwide IoT 2017 Predictions (IDC #US40755816)
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 4
@CMacIDC
IDC FutureScape: IoT Prediction
Highlights
For additional details on the above Predictions, please refer to report:
IDC FutureScape: Worldwide IoT 2017 Predictions (IDC #US40755816)
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 5
LPWAN
conflict
Open
data
platforms
emerge
Analytics
& IoT
collide
The role
of “the
Edge”
@CMacIDC
IT Impact
Guidance
 Short term thinking will not
provide sufficient coverage,
security & QoS for business
needs over long term
 Time frame to scale may not fit
within deployment plans
 Conduct due diligence against
the various connectivity options
that could be used for wide
area IoT deployments
 Question long term viability,
quality access and scalability to
your evaluation checklist
LPWAN conflict: Despite hype on the benefits of LPWAN, such
as LoRA & Sigfox, its unlicensed spectrum & lack of QoS will
cause companies to focus it on non-critical applications with 3%
deploying by 2018
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 6
TIME (MONTHS) TO MAINSTREAM
ORGANIZATIONALIMPACT
Asingle
department
orabusinessunit
Multiple
departments
orbusinessunitsCompanywide
0-12 12-24 24+
1
2
3
4
5
6
7
8
9
10
Open data
platforms
emerge
LPWAN
conflict
Cycle time
improve-
ments
Blockchain
realized
Security
evolves
Industry
growth
IoT/IT services
The
edge
Smart City
assets
Analytics and
IoT collide
4
2
@CMacIDC
Open data platforms emerge: By 2018, the “Open Data
Platform” will emerge as the next frontier in platform discussions,
causing confusion for enterprises that already invested in IoT
platform solutions
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 7
TIME (MONTHS) TO MAINSTREAM
ORGANIZATIONALIMPACT
Asingle
department
orabusinessunit
Multiple
departments
orbusinessunitsCompanywide
0-12 12-24 24+
1
2
3
4
5
6
7
8
9
10
Open data
platforms
emerge
LPWAN
conflict
Cycle time
improve-
ments
Blockchain
realized
Security
evolves
Industry
growth
IoT/IT services
The
edge
Smart City
assets
Analytics and
IoT collide
IT Impact
Guidance
 Linking existing IoT platform
investments with an open data
platform philosophy
 Line of business will be
demanding a faster turnaround
on comprehensive data views
 Ensure vendors are talking
about ‘open’, API-based, and
developer-friendly
environments
 Partner with Line of Business
to look at the longer term data
requirements and plan for how
it will be integrated with the
current environment
@CMacIDC
Analytics & IoT collide: By 2019, all effective IoT efforts will
merge streaming analytics with machine learning trained on data
lakes, marts & content stores, accelerated by discrete or
integrated processors
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 8
TIME (MONTHS) TO MAINSTREAM
ORGANIZATIONALIMPACT
Asingle
department
orabusinessunit
Multiple
departments
orbusinessunitsCompanywide
0-12 12-24 24+
1
2
3
4
5
6
7
8
9
10
Open data
platforms
emerge
LPWAN
conflict
Cycle time
improve-
ments
Blockchain
realized
Security
evolves
Industry
growth
IoT/IT services
The
edge
Smart City
assets
Analytics and
IoT collide
IT Impact
Guidance
 Need for developers, data
scientists & operations teams to
work together to build reliable
algorithms and models
 A combo of at-rest analytics and
continuous analytics will require
IT investments that extend to
continuous and micro-batch
movement & normalization of
data
 Make evaluation and
experimentation with machine
learning for IoT use cases a top
priority
 Evolve your end-to-end
continuous analytics
3
10
@CMacIDC
The “Edge”: By 2019, at least 40% of IoT-created data will be
stored processed, analyzed and acted upon close to, or at the
Edge of, the network
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 9
TIME (MONTHS) TO MAINSTREAM
ORGANIZATIONALIMPACT
Asingle
department
orabusinessunit
Multiple
departments
orbusinessunitsCompanywide
0-12 12-24 24+
1
2
3
4
5
6
7
8
9
10
Open data
platforms
emerge
LPWAN
conflict
Cycle time
improve-
ments
Blockchain
realized
Security
evolves
Industry
growth
IoT/IT services
The
edge
Smart City
assets
Analytics and
IoT collide
IT Impact
Guidance
 Investment required in
virtualization and software-
driven device management
solutions
 “Edge” endpoints will be
vulnerable to security threats
 Remote management services
will need to be
updated/acquired
 Look for IT hardware vendors
with a IoT gateway strategy
 Invest in network capacity to
handle variable and
unexpected data traffic
 Ensure enterprise software
vendors have road maps that
have analytics engines that
address the ‘Edge’
requirements
@CMacIDC
IDC FutureScape: Worldwide
IoT Predictions
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 10
TIME (MONTHS) TO MAINSTREAM
ORGANIZATIONALIMPACT
Asingle
department
orabusinessunit
Multiple
departments
orbusinessunitsCompanywide
0-12 12-24 24+
1
2
3
4
5
6
7
8
9
10
Open data
platforms
emerge
LPWAN
conflict
Cycle time
improve-
ments
Blockchain
realized
Security
evolves
Industry
growth
IoT/IT services
The
edge
Smart City
assets
Analytics and
IoT collide
1
2
3
4
5
6
7
8
9
10
By 2018, the "open data platform" will emerge as the next frontier in
platform discussions, causing confusion for enterprises that already
invested in IoT platform solutions.
Despite hype on the benefits of low power WAN, such as LoRa and
Sigfox, its unlicensed spectrum and lack of QoS causes companies to
focus it on non-critical applications – with 3% deploying by 2018.
By 2018, investments in operational sensing through IoT and situational
awareness via analytics will deliver 30% improvements in critical process
cycle times.
By 2019, as IoT adoption grows in major industry, government and
consumer sectors, 20% of all IoT deployments will have basic levels of
blockchain services enabled.
By 2019, more than 75% of IoT device manufacturers will improve their
security and privacy capabilities, making them more trustworthy partners
for technology buyers.
In 2017, connected vehicles, insurance telematics, personal wellness, and
smart buildings will be four IoT use cases in the spotlight across all
worldwide regions, accounting for $96B spending.
As adoption of IoT grows, 75% of IoT adopters will turn to outside firms
for help in strategy, planning, development, implementation, and/or
management of these initiatives.
By 2019, at least 40% of IoT-created data will be stored, processed,
analyzed, and acted upon close to, or at the edge of, the network.
By 2019, 40% of local and regional governments will use IoT to turn
infrastructure like roads, street lights, and traffic signals into assets
instead of liabilities.
By 2019, all effective IoT efforts will merge streaming analytics with
machine learning trained on data lakes, marts, and content stores,
accelerated by discrete or integrated processors.
@CMacIDC
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 11
Q&A
Carrie MacGillivray
Vice President
Mobility & IoT
cmacgillivray@idc.com
@CMacIDC
IDC’s CIO & Tech Exec Forum
Please note: Membership is restricted to technology executives (i.e., CIOs, CSOs, CISOs, VPs, etc) or their equivalent involved in the purchase, evaluation or recommendation of IT products/services within their organizations.
Join IDC’s exclusive LinkedIn
forum designed for IT executives
for learning opportunities, direct
access to IDC’s industry experts
and complimentary research.
Join & Learn More!
The IDC Difference
Influential Thought
Leadership
Global Market and
Industry Expertise
Personalized Client
Engagement
13
IDC Offers Unmatched Global
and Local Expertise
14
Significant primary demand-
side research – more than
300,000end users
surveyed annually
More than
1,100 Analysts
located in over 50 countries
worldwide, with 49%of
analysts in emerging
markets
Providing global, regional,
and local expertise on
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in over 110
countries
IDC’s IT Executive Programs
© IDC Visit us at IDC.com/itexecutive 15
IDC’s IT Executive Programs help today’s time-constrained technology
professionals make more effective technology decisions.
IDC DecisionScapes: Fact-based research methodologies to support
decision making
Industry specific expertise – industry analysts with combined decades
of industry experience
Best in class concierge customer service to help you make decisions
faster
Research supported by global analyst team with local insight
How IDC helps:
Industry Innovation
© IDC Visit us at IDC.com/itexecutive 16
• Leveraging the Healthcare Digital
Convergence
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IDC FutureScape : Worldwide Internet of Things 2017 Predictions.

  • 1. IDC FutureScape: Worldwide Internet of Things 2017 Predictions Carrie MacGillivray, VP, IoT & Mobility IDC Web Conference November 8, 2016
  • 2. Logistics  Submit any questions to webconferences@idc.com  You can download today’s presentation from the “Resource List” in the lower left corner of the console  Audience feedback can be provided via the short survey found by clicking the Survey icon at the bottom of the console  For additional IDC FutureScape topics, visit www.idc.com/idcfuturescapes2017 and click on the “events” tab  To learn more about IDC’s IT Executive Programs visit www.idc.com/itexecutive  Join the Conversation in the IDC Community: http://idc-community.com © IDC Visit us at IDC.com and follow us on Twitter: @IDC 2 Today’s Speaker Carrie MacGillivray VP, IoT & Mobility @CMacIDC
  • 3. IDC FutureScape: Worldwide IoT Predictions © IDC Visit us at IDC.com and follow us on Twitter: @IDC 3 TIME (MONTHS) TO MAINSTREAM ORGANIZATIONALIMPACT Asingle department orabusinessunit Multiple departments orbusinessunitsCompanywide 0-12 12-24 24+ 1 2 3 4 5 6 7 8 9 10 Open data platforms emerge LPWAN conflict Cycle time improve- ments Blockchain realized Security evolves Industry growth IoT/IT services The edge Smart City assets Analytics and IoT collide 1 2 3 4 5 6 7 8 9 10 By 2018, the "open data platform" will emerge as the next frontier in platform discussions, causing confusion for enterprises that already invested in IoT platform solutions. Despite hype on the benefits of low power WAN, such as LoRa and Sigfox, its unlicensed spectrum and lack of QoS causes companies to focus it on non-critical applications – with 3% deploying by 2018. By 2018, investments in operational sensing through IoT and situational awareness via analytics will deliver 30% improvements in critical process cycle times. By 2019, as IoT adoption grows in major industry, government and consumer sectors, 20% of all IoT deployments will have basic levels of blockchain services enabled. By 2019, more than 75% of IoT device manufacturers will improve their security and privacy capabilities, making them more trustworthy partners for technology buyers. In 2017, connected vehicles, insurance telematics, personal wellness, and smart buildings will be four IoT use cases in the spotlight across all worldwide regions, accounting for $96B spending. As adoption of IoT grows, 75% of IoT adopters will turn to outside firms for help in strategy, planning, development, implementation, and/or management of these initiatives. By 2019, at least 40% of IoT-created data will be stored, processed, analyzed, and acted upon close to, or at the edge of, the network. By 2019, 40% of local and regional governments will use IoT to turn infrastructure like roads, street lights, and traffic signals into assets instead of liabilities. By 2019, all effective IoT efforts will merge streaming analytics with machine learning trained on data lakes, marts, and content stores, accelerated by discrete or integrated processors. @CMacIDC
  • 4. Drivers for IoT in 2017 and beyond  DX – technology-centric transformation altering business and society  New funding models – accelerating disruption and innovation  Everything, Everywhere – the rise of computer-based intelligence  Disruptive Fault lines – security, privacy and regulation  Shifting Economics – data as digital capital  Materialization – revolutionizing industrial and commercial processes  Platform Economy- the ecosystem battle for scale For additional details on the above Drivers, please refer to report: IDC FutureScape: Worldwide IoT 2017 Predictions (IDC #US40755816) © IDC Visit us at IDC.com and follow us on Twitter: @IDC 4 @CMacIDC
  • 5. IDC FutureScape: IoT Prediction Highlights For additional details on the above Predictions, please refer to report: IDC FutureScape: Worldwide IoT 2017 Predictions (IDC #US40755816) © IDC Visit us at IDC.com and follow us on Twitter: @IDC 5 LPWAN conflict Open data platforms emerge Analytics & IoT collide The role of “the Edge” @CMacIDC
  • 6. IT Impact Guidance  Short term thinking will not provide sufficient coverage, security & QoS for business needs over long term  Time frame to scale may not fit within deployment plans  Conduct due diligence against the various connectivity options that could be used for wide area IoT deployments  Question long term viability, quality access and scalability to your evaluation checklist LPWAN conflict: Despite hype on the benefits of LPWAN, such as LoRA & Sigfox, its unlicensed spectrum & lack of QoS will cause companies to focus it on non-critical applications with 3% deploying by 2018 © IDC Visit us at IDC.com and follow us on Twitter: @IDC 6 TIME (MONTHS) TO MAINSTREAM ORGANIZATIONALIMPACT Asingle department orabusinessunit Multiple departments orbusinessunitsCompanywide 0-12 12-24 24+ 1 2 3 4 5 6 7 8 9 10 Open data platforms emerge LPWAN conflict Cycle time improve- ments Blockchain realized Security evolves Industry growth IoT/IT services The edge Smart City assets Analytics and IoT collide 4 2 @CMacIDC
  • 7. Open data platforms emerge: By 2018, the “Open Data Platform” will emerge as the next frontier in platform discussions, causing confusion for enterprises that already invested in IoT platform solutions © IDC Visit us at IDC.com and follow us on Twitter: @IDC 7 TIME (MONTHS) TO MAINSTREAM ORGANIZATIONALIMPACT Asingle department orabusinessunit Multiple departments orbusinessunitsCompanywide 0-12 12-24 24+ 1 2 3 4 5 6 7 8 9 10 Open data platforms emerge LPWAN conflict Cycle time improve- ments Blockchain realized Security evolves Industry growth IoT/IT services The edge Smart City assets Analytics and IoT collide IT Impact Guidance  Linking existing IoT platform investments with an open data platform philosophy  Line of business will be demanding a faster turnaround on comprehensive data views  Ensure vendors are talking about ‘open’, API-based, and developer-friendly environments  Partner with Line of Business to look at the longer term data requirements and plan for how it will be integrated with the current environment @CMacIDC
  • 8. Analytics & IoT collide: By 2019, all effective IoT efforts will merge streaming analytics with machine learning trained on data lakes, marts & content stores, accelerated by discrete or integrated processors © IDC Visit us at IDC.com and follow us on Twitter: @IDC 8 TIME (MONTHS) TO MAINSTREAM ORGANIZATIONALIMPACT Asingle department orabusinessunit Multiple departments orbusinessunitsCompanywide 0-12 12-24 24+ 1 2 3 4 5 6 7 8 9 10 Open data platforms emerge LPWAN conflict Cycle time improve- ments Blockchain realized Security evolves Industry growth IoT/IT services The edge Smart City assets Analytics and IoT collide IT Impact Guidance  Need for developers, data scientists & operations teams to work together to build reliable algorithms and models  A combo of at-rest analytics and continuous analytics will require IT investments that extend to continuous and micro-batch movement & normalization of data  Make evaluation and experimentation with machine learning for IoT use cases a top priority  Evolve your end-to-end continuous analytics 3 10 @CMacIDC
  • 9. The “Edge”: By 2019, at least 40% of IoT-created data will be stored processed, analyzed and acted upon close to, or at the Edge of, the network © IDC Visit us at IDC.com and follow us on Twitter: @IDC 9 TIME (MONTHS) TO MAINSTREAM ORGANIZATIONALIMPACT Asingle department orabusinessunit Multiple departments orbusinessunitsCompanywide 0-12 12-24 24+ 1 2 3 4 5 6 7 8 9 10 Open data platforms emerge LPWAN conflict Cycle time improve- ments Blockchain realized Security evolves Industry growth IoT/IT services The edge Smart City assets Analytics and IoT collide IT Impact Guidance  Investment required in virtualization and software- driven device management solutions  “Edge” endpoints will be vulnerable to security threats  Remote management services will need to be updated/acquired  Look for IT hardware vendors with a IoT gateway strategy  Invest in network capacity to handle variable and unexpected data traffic  Ensure enterprise software vendors have road maps that have analytics engines that address the ‘Edge’ requirements @CMacIDC
  • 10. IDC FutureScape: Worldwide IoT Predictions © IDC Visit us at IDC.com and follow us on Twitter: @IDC 10 TIME (MONTHS) TO MAINSTREAM ORGANIZATIONALIMPACT Asingle department orabusinessunit Multiple departments orbusinessunitsCompanywide 0-12 12-24 24+ 1 2 3 4 5 6 7 8 9 10 Open data platforms emerge LPWAN conflict Cycle time improve- ments Blockchain realized Security evolves Industry growth IoT/IT services The edge Smart City assets Analytics and IoT collide 1 2 3 4 5 6 7 8 9 10 By 2018, the "open data platform" will emerge as the next frontier in platform discussions, causing confusion for enterprises that already invested in IoT platform solutions. Despite hype on the benefits of low power WAN, such as LoRa and Sigfox, its unlicensed spectrum and lack of QoS causes companies to focus it on non-critical applications – with 3% deploying by 2018. By 2018, investments in operational sensing through IoT and situational awareness via analytics will deliver 30% improvements in critical process cycle times. By 2019, as IoT adoption grows in major industry, government and consumer sectors, 20% of all IoT deployments will have basic levels of blockchain services enabled. By 2019, more than 75% of IoT device manufacturers will improve their security and privacy capabilities, making them more trustworthy partners for technology buyers. In 2017, connected vehicles, insurance telematics, personal wellness, and smart buildings will be four IoT use cases in the spotlight across all worldwide regions, accounting for $96B spending. As adoption of IoT grows, 75% of IoT adopters will turn to outside firms for help in strategy, planning, development, implementation, and/or management of these initiatives. By 2019, at least 40% of IoT-created data will be stored, processed, analyzed, and acted upon close to, or at the edge of, the network. By 2019, 40% of local and regional governments will use IoT to turn infrastructure like roads, street lights, and traffic signals into assets instead of liabilities. By 2019, all effective IoT efforts will merge streaming analytics with machine learning trained on data lakes, marts, and content stores, accelerated by discrete or integrated processors. @CMacIDC
  • 11. © IDC Visit us at IDC.com and follow us on Twitter: @IDC 11 Q&A Carrie MacGillivray Vice President Mobility & IoT cmacgillivray@idc.com @CMacIDC
  • 12. IDC’s CIO & Tech Exec Forum Please note: Membership is restricted to technology executives (i.e., CIOs, CSOs, CISOs, VPs, etc) or their equivalent involved in the purchase, evaluation or recommendation of IT products/services within their organizations. Join IDC’s exclusive LinkedIn forum designed for IT executives for learning opportunities, direct access to IDC’s industry experts and complimentary research. Join & Learn More!
  • 13. The IDC Difference Influential Thought Leadership Global Market and Industry Expertise Personalized Client Engagement 13
  • 14. IDC Offers Unmatched Global and Local Expertise 14 Significant primary demand- side research – more than 300,000end users surveyed annually More than 1,100 Analysts located in over 50 countries worldwide, with 49%of analysts in emerging markets Providing global, regional, and local expertise on technology & industry trends in over 110 countries
  • 15. IDC’s IT Executive Programs © IDC Visit us at IDC.com/itexecutive 15 IDC’s IT Executive Programs help today’s time-constrained technology professionals make more effective technology decisions. IDC DecisionScapes: Fact-based research methodologies to support decision making Industry specific expertise – industry analysts with combined decades of industry experience Best in class concierge customer service to help you make decisions faster Research supported by global analyst team with local insight How IDC helps:
  • 16. Industry Innovation © IDC Visit us at IDC.com/itexecutive 16 • Leveraging the Healthcare Digital Convergence • Improving Health Delivery Models • Transforming Public Health • Building Smart Cities • Transforming Government • Prioritizing Government Investments • Smart Oil and Gas • Smart Utilities • Smart Mining • Innovating Product Development • Innovating Services • Optimizing the Supply Chain • Transforming Manufacturing • Creating the Omni-Channel Experience • Maximizing Retail Investment • Engaging Consumers • Improving Performance • Managing Risk IDC’s Insights Lines of Business Help You Drive Industry Innovation
  • 17. 17 IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,100 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 50 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, data, and marketing services company. Terms of Use: Except as otherwise noted, the information enclosed is the intellectual property of IDC, copyright 2016. Reproduction is forbidden unless authorized; contact permissions@idc.com for information. All rights reserved.