Smart Gateways and IoT Platforms | Pipeline Magazine

Author: Scott St. John, Pipeline

The Internet of Things (IoT) market is at an inflection point. It represents a huge opportunity for network and service providers, with some market forecasters predicting a more than 300 percent increase in the number of connected devices coming online between now and 2030. That equates to nearly 30 million devices and a $10 trillion market across multiple verticals. But the question remains whether network service providers will seize the IoT opportunity to move up the value chain, delivering greater value and helping their customers transform.

There’s a similar historical comparison between the current IoT market and the previous smartphone capabilities. The advent of 4G and smartphones added intelligence to the device, on which other services could be layered. Service providers at the time focused on providing as many connectivity services and data plans as possible. And for a while, that was a good business. But then the network, connectivity, and services became commoditized, leading to high churn rates and fierce competition. Ultimately, while service providers owned the network, connectivity, and relationships with direct customers, the lion’s share of smartphone capabilities went to third-party app and data service providers, while they were left holding the bag on years of network and customer service costs.

Now, with IoT, service providers once again have a monumental opportunity to scale the pinnacle of innovation. Much like the smartphone model, the IoT business model for service providers now revolves around device connectivity, a data plan, and a SIM card. This is a significant opportunity now, but it is already a highly competitive commodity business. However, customer relationships give them an edge, and many service providers are looking for ways to deliver more business value to their customers, who also want to receive more value from their service provider. This is a win-win opportunity.

The adoption of connected devices by enterprises is accelerating at a rapid pace, and business operations are becoming increasingly digital. Enterprises are becoming increasingly distributed, with users, endpoints, and applications spread across multiple locations and cloud environments. As a result, managing complexity and making operational decisions is becoming increasingly difficult. These enterprises, especially small and medium-sized businesses (SMBs), are looking for tools and expertise that will help them transform and leverage the potential of IoT.

IoT devices and sensors provide a wealth of data that can be used to deliver business insights and make better, more informed operational decisions. They can also be used to deliver greater intelligence and unlock the power of AI analytics and automation. This is where the real opportunity lies for service providers to deliver powerful tools that simplify IoT complexity and deliver greater business value to their customers.