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IoT trends: From hype to an essential part of modern business?
With the phase-out of services and platforms like IBM Watson IoT and SAP Leonardo, the IoT market has consolidated over the past years. Has the IoT hit its peak, or should companies expand their vision to turn it into a lasting, profitable solution? Stefan Hudelmaier, Director of Cloud Architecture & Innovation at Device Insight, sheds light on the key IoT trends in this context.
Guest author
23 October, 2024
Imagine
Reading Time: 2 min.
By Alexandra Luchtai
Stefan, has the Internet of Things moved past its peak as a groundbreaking, complex technology and become a "commodity"?
Stefan Hudelmaier: “IoT is more than just a passing trend; it’s a tool that supports use cases and solves business-relevant problems, creating real value. Various IoT trends are shaping the market. In the early days of IoT, there was much experimentation – often without clear use cases. As with many new technologies, it became obvious over time that not everything technically possible is economically viable. Often, the commercial success of these early solutions fell short of expectations. We are facing a similar situation today with artificial intelligence.”
What challenges do companies encounter with their IoT solutions, and what emerging trends are we seeing?
Stefan Hudelmaier: “Previously, companies relied heavily on external service providers. Now they recognize the value of building their own resources. This shift is one of the most significant IoT trends over the past year. However, developing in-house software comes with challenges: many companies struggle to find and retain skilled developers, particularly SMEs, which often find themselves in less desirable locations competing for talent.
Stefan Hudelmaier, Director of Cloud Architecture & Innovation
Problems also arise from IoT platforms introduced during the hype phase, which later proved to be inefficient, unstable, or insufficiently scalable. The consequences include high operational costs, unreliable systems, and significant efforts required to maintain these platforms, tying up developer resources. This is especially burdensome when managing infrastructure and applications is time-intensive due to reliance on Infrastructure as a Service (IaaS).
Furthermore, many older platforms lack modular architecture, which hinders flexibility for new features and enhancements. All of this can negatively impact the entire business. We must recognize that IoT has become an integral part of many products. An unstable IoT architecture or digital component of a larger product diminishes the overall value of the solution, ultimately leading to decreased customer satisfaction and potentially harming the company’s reputation. High operational, development, and security costs drain resources that could be better spent on improving and developing products.”
IoT remains a groundbreaking technology. It is maturing and must adapt to changing demands. Strategic planning and the use of appropriate cloud services can effectively and cost-efficiently apply IoT trends into digital services.
How can a company respond when its IoT solution is inefficient or expensive?
Stefan Hudelmaier: “First and foremost, acknowledging the issue is the first step toward making improvements. Companies must rigorously evaluate their solutions and draw the right conclusions to achieve real enhancements. The evaluation process begins by asking whether the current IoT solution creates value. If not, it may be worth reconsidering whether the chosen digitalization approach is appropriate for the company. If there is a clear use case or a strong likelihood of one emerging soon, all elements – from tools to services to processes and costs – should be thoroughly examined. Key questions can help guide this process: Are we focusing on the critical pain points? Do we have sufficient internal expertise for migrating to a state-of-the-art solution? What can relieve our developers and reduce operating costs?
External expertise can assist in this evaluation, such as the 5 by 5 Assessment we offer to our clients, which takes current IoT trends into account. Time and again, we find that an IoT migration – from an all-encompassing platform to flexible, cloud-based solution applications -can be advantageous. While this may sound complex (and thus sometimes meets with resistance), our specialized knowledge of hyperscaler offerings, which include numerous Platform as a Service (PaaS) options, often makes the process manageable in a short timeframe.”
To read Stefan Hudelmaier's advice to companies struggling with the discontinuation of a platform and the conclusion of the discussion, visit the Device Insight blog and read the full article.
About the author
Alexandra Luchtai writes regularly about technology innovations, latest projects and market insights around IoT, IIoT and any kind of smart products connected by IoT specialist and KUKA subsidiary Device Insight.
