TORONTO – Canadian businesses are poised to embrace the ‘Internet of Things’ (IoT) with spending expected to jump to $21 billion annually in the next four years, according to a Telus-commissioned IDC survey.
IoT – the evolution of machine-to-machine (M2M) technology – is a network of uniquely identifiable end points (or things) that communicate without human interaction, most commonly over a wireless network. The systems collect, analyze and act on information in real time and are being deployed to create ‘smart’ connected businesses, homes, cars and cities.
The survey, which examined the current state of IoT deployments in Canada, found that only 6% of Canadian businesses have implemented an IoT solution, and that another 7% are preparing to deploy in 2014. The technology is on the cusp of rapid growth however, with an additional 30% of businesses intending to deploy in the next 24 months, and annual IoT spending in Canada predicted to rocket up 375% – from $5.6 billion in 2013 to $21 billion in 2018.
First-generation IoT technology is more common in the utilities and transportation sectors, where companies have operated basic applications like remote monitoring and fleet tracking for more than a decade, according to the survey. However, recent advancements in the reach and speed of wireless networks and technologies like cloud computing are fueling the growth of IoT and opening up its potential in other industries like manufacturing, oil and gas, healthcare, retail, financial services and insurance.
Additional research findings include:
– Wireless network technologies are currently used in 82% of IoT deployments; this figure is expected grow going forward due to the pervasiveness of wireless connectivity;
– While 74% of businesses are storing data generated from IoT internally, IDC expects the amount of ‘Big Data’ generated by millions of connected devices to become a constraint that will require hosted or cloud solutions;
– Where external providers are employed to manage the IoT platform or application, cloud solutions are used in 61% of the time. Due to the inherent flexibility and scalability offered by cloud, IDC predicts this number will grow;
– Ensuring the security of IoT solutions was considered a major challenge by 31% of respondents; IDC recommends that organizations be proactive about security and select the right partner to fortify networks, devices, applications, data and other physical assets.
Telus/IDC Internet of Things Study 2014: The Connected Canadian Business surveyed 209 medium and large (i.e., with more than 100 employees) Canadian organizations by phone and web between March and April 2014. This included 122 IT decision-makers as well as 87 business leaders across a variety of departments.
