Story image

Enterprise driving IoT hardware and services spend

11 Nov 2015

In 2016, 5.5 million new ‘things’ will get connected to the internet of things every day, with 6.4 billion connected things in use worldwide – a 30% increase on 2015.

Gartner says those connected things will help propel internet of things services spending to US$235 billion next year, up 22% from this year.

The analyst firm says services are dominated by the professional category, in which business contract external suppliers to design, install and operate IoT systems, however connectivity services through communications service providers, and consumer services will grow at a faster pace.

Jim Tully, Gartner vice president and distinguished analyst, says IoT services are the real driver of value in IoT and increasing attention is being focused on new services by end-user organisations and vendors.

Tully says the enterprise will account for the largest IoT spending, with enterprise IoT hardware spend of $868 billion in 2016.

In the enterprise, Gartner considers two classes of connected things: generic or cross-industry devices that are used in multiple industries, and vertical-specific devices that are found in particular industries.

Cross-industry devices include connected light bulbs, HVAC and building management systems that are mainly deployed for purposes of cost saving, while vertical-specific devices, include specialised equipment used in hospital operating theatres, tracking devices in container ships and many others.

"Connected things for specialised use are currently the largest category, however, this is quickly changing with the increased use of generic devices,” Tully says.

“By 2020, cross-industry devices will dominate the number of connected things used in the enterprise,” he adds.

While enterprise will account for the largest spend, Gartner says aside from connected cars it will be consumer uses which will continue to account for the greatest number of connected things.

Gartner estimates that 4 billion connected things will be in use in the consumer sector in 2016, and will reach 13.5 billion in 2020, with hardware spend for consumer applications amounting to $546 billion in 2016.

Microsoft appoints new commercial and partner business director
Bowden already has almost a decade of Microsoft relationship management experience under her belt, having joined the business in 2010.
Zoom’s new Rooms and Meetings features
Zoom has released information about the upcoming releases for its Rooms and Meeting offerings for 2019.
Aussie company set to democratise direct-to-orbit IoT access
Adelaide-based Myriota has released a developer toolkit that has been trialled and tested by a smart waste management platform.
Apple's AirPods now come with 'Hey Siri' functionality
The new AirPods come with a standard case or a Wireless Charging Case that holds additional charges for more than 24 hours of listening time.
Dynatrace takes pole position in APM Magic Quadrant
It placed highest on Ability to Execute and furthest on Completeness of Vision in the 2019 Quadrant for Application Performance Monitoring (APM).
HCL and Xerox expand strategic partnership
Under the terms of the agreement, HCL will manage portions of Xerox’s shared services, including global administrative and support functions.
Avaya expands integration with Google Cloud AI
This includes embedding Google’s machine learning within conversation services for the contact centre, enabling integration of AI capabilities.
Forrester names Crowdstrike leader in incident response
The report provides an in-depth evaluation of the top 15 IR service providers across 11 criteria.