IoT Connection Forecasts Point to a Need for New Operator Strategies

K. Weldon
K. Weldon

Summary Bullets:

  • According to new forecasts from GlobalData, the global number of Internet of Things (IoT) connections will reach 4.5 billion by 2023, dominated by short-range and cellular connections and with a five-year CAGR of 28%.
  • This is only moderately good news for mobile operators, which will see cellular connections grow by only a CAGR of 16% over five years. More importantly, connectivity is only expected to generate 5-10% of total IoT revenues predicted by GlobalData at $317 billion by 2023.

It has been clear for a long time that operators need to move beyond connectivity to make any serious money in IoT. According to new forecasts from GlobalData, the global number of Internet of Things connections will reach 4.5 billion by 2023, dominated by short-range and cellular connections but with especially strong growth from LPWANs. The five-year compound annual growth rate (CAGR) for all IoT connectivity types is moderate, at 28%. Continue reading “IoT Connection Forecasts Point to a Need for New Operator Strategies”

IoT Security is Still a Major Barrier to Adoption

Kathryn Weldon – Research Director, Business Network and IT Services – Americas

Summary Bullets:

• IoT security still comes up as the number one deterrent to IoT adoption, year after year (after year!).

• While point solutions abound, the complex supplier ecosystem coupled with the diversity of IoT use cases and device types makes this a hard nut to crack.

Considering the fact that every survey ever conducted among enterprises over the last five years about IoT has shown that the number one barrier to adoption is lack of security, we would have expected the supplier ecosystem to finally “fix” this problem once and for all. But instead, with the advent of massive proliferation of IoT devices upon us, coupled with an occasional high-profile breach, enterprises are more cautious than ever and rightly so. Continue reading “IoT Security is Still a Major Barrier to Adoption”

Are Private 4G/5G Networks a New Battleground for Operators?

Kathryn Weldon – Research Director, Business Network and IT Services – Americas

ary Bullets:

• Mobile operators are hoping to generate substantial revenues from in-building 4G/5G networks; 5G in particular provides an opportunity to replace legacy WiFi and DAS systems and support both fixed and mobile use cases.

• However, private network initiatives from infrastructure vendors, coupled with a scramble for CBRS licenses, as well as DIY plans from companies and commercial landlords imply fierce competition for the operators. Can they win the battle?

Nearly every mobile operator touting future 5G use cases has discussed support for private “in-building” networks as a substantial opportunity, especially in industrial environments in which every machine and environmental parameter sensor will be connected and transmitting data in real-time. While some operators already offer private networks using 4G LTE, many are scoping out future 5G offerings which focus on IoT use cases in industrial environments. Continue reading “Are Private 4G/5G Networks a New Battleground for Operators?”

Operators at MWC: It’s Not Only About 5G

K. Weldon
K. Weldon

Summary Bullets:

  • While mobile operators certainly made a lot of announcements (and showed a lot of demos) about trials, use cases, and upcoming plans for 5G, there were also a lot of other topics on the table.
  • Other announcements focused not only on existing services (e.g., 4G, IoT), but also on changes deemed necessary for operators’ future success, focusing on collaboration, simplification, and internal transformation.

MWC was expected to focus on 5G, with new buildout plans and service trials, a sprinkling of new 5G devices, and titillating demos of AR/VR applications, AI-powered use cases, and self-driving cars. As expected, leading infrastructure vendors including Huawei, Nokia, Ericsson, and Cisco were touting 5G deals with leading operators and showcasing technology enhancements to support new 5G-powered applications. Continue reading “Operators at MWC: It’s Not Only About 5G”

Infrastructure Vendor IoT Strategies: What Impact Do They Have on Service Providers?

K. Weldon
K. Weldon

Summary Bullets:

  • Last week, Nokia announced a strategy to build out private industrial LTE networks, Ericsson carved out four cellular IoT segments, and Cisco offered solutions to bring ‘intent-based’ networking to the edge.
  • What do these announcements imply about the future of the IIoT and how should service providers respond?

Last week, three of the most powerful infrastructure and networking equipment vendors made IoT-related announcements, some in conjunction with their Q4 earnings reports. While this clearly denotes how strongly they view IoT as a key growth market, it also brings into question their relationships with the operators which in many cases have been their primary customers. Continue reading “Infrastructure Vendor IoT Strategies: What Impact Do They Have on Service Providers?”

What’s New in Enterprise Mobility Services?

K. Weldon
K. Weldon

Summary Bullets:

• The enterprise mobility services market is often seen as a cash cow, with a relatively static set of offerings hampered by a number of commoditized market segments (e.g.,a MDM), with few innovative service introductions.

• However, GlobalData’s latest analysis of this market shows clearly that there are still new often-innovative capabilities being introduced by operators that not only help business customers but also provide market differentiation.

GlobalData’s Competitive Landscape Assessment of the Global Enterprise Mobility Services market describes, ranks, and analyzes the latest portfolios and new service launches of top mobile operators (including AT&T, BT, Deutsche Telekom, Orange Business Services, Telefonica, Verizon, and Vodafone). The report also analyzes the key trends in the market. Continue reading “What’s New in Enterprise Mobility Services?”

IoT Forecasts Augur Well for Software and Services, a $226 Billion Market by 2023

K. Weldon
K. Weldon

Summary Bullets:

  • According to GlobalData, the global market for business-focused Internet of Things (IoT) technology, which consists of software, services, connectivity, and devices, reached $130 billion in 2018, and it is projected to reach $318 billion by 2023, a CAGR of 20%.
  • This forecast has implications both for IoT vendors and service providers as well as for the enterprises that will use their products and services to achieve operations improvements, cost reduction, and eventually revenue-generating products and services of their own.

GlobalData’s latest IoT forecast splits out technology into three segments: software and solutions, connectivity, and devices.
Continue reading “IoT Forecasts Augur Well for Software and Services, a $226 Billion Market by 2023”

SigFox Keeps on Truckin’

Kathryn Weldon – Research Director, Business Network and IT Services – Americas

Summary Bullets:

• Sigfox, while one of the first LPWAN providers, has been hampered by business and organizational problems, and faces significant competition from LoRa, LTE-M, and NB-IoT alternatives.

• At its annual Connect event the service provider hoped to turn the tide with good news about coverage and traction and a spate of service and network-related announcements.

At its Connect event in Berlin on October 25th, Sigfox sought to displace the growing concern that it is running last in the global race to provide LPWANs, in the face of standardized licensed spectrum alternatives NB-IoT and LTE-M, as well as networks based on competitive LoRaWAN technology, all of which have been gaining ground. The following public announcements from the event show a range of focus areas for the service provider, notably highly accurate, global location-based services for asset tracking, along with technologies that enhance its network performance and ease of deployment benefits.

Public Announcements

New Micro Base Station. The Access Station Micro provides an adaptable and easy-to-install solution to significantly enhance Sigfox IoT service coverage to billions of devices. A single gateway could cover large rural areas, hundreds of square kilometers without effort. Its extremely low energy consumption enables remote IoT applications where no power source is available with a single small solar panel and a low bandwidth satellite backhaul.
Continue reading “SigFox Keeps on Truckin’”

Software AG Virtual Analyst Event: Cumulocity IoT Platform Goes up the Stack

Kathryn Weldon – Research Director, Business Network and IT Services – Americas

Summary Bullets:

• German-based enterprise software vendor Software AG held an innovative virtual product release event on October 10th, which focused on new capabilities across its portfolio.

• Of particular interest were new capabilities of its IoT platform, Cumulocity IoT, which are aligned with the industry, as vendors seek to move up from connectivity management to edge computing, application enablement, and advanced analytics.

Software AG’s Cumulocity IoT platform, acquired by the software vendor in March 2017, has maintained its solid reputation for connectivity and device management. It is sold directly to enterprises but is also provided to businesses through reseller agreements with operators such as Deutsche Telekom and Telefonica, value-added reseller Tieto, and Siemens, the latter of which uses it for the device connectivity element of its Mindsphere solution. But while the platform gets good technical reviews, it has often been relegated to “also-ran” status when compared to competing platforms from the likes of enterprise heavy-hitters SAP, IBM, and Microsoft, industrial expert PTC, and hyperscale cloud services providers Google and AWS.
Continue reading “Software AG Virtual Analyst Event: Cumulocity IoT Platform Goes up the Stack”

Verizon Scopes Out Vivid 5G Future

K. Weldon
K. Weldon

Summary Bullets:

  • Verizon’s analyst event detailed its product and roadmap stack from connectivity to managed and virtualized services, edge solutions, and SaaS-delivered applications.
  • Surprisingly, 5G was the technology discussed the most at the event, viewed by the operator as the growth engine of the future which will revolutionize industry by enabling ‘real-time’ business processes.

There’s a 5G arms race in North America! Europe’s operators, while some of the globe’s largest telcos, just aren’t approaching next-gen mobile networks with quite the same gusto as their U.S. cousins. Just take U.S. communications giant Verizon, which has already launched fixed 5G for consumers and is going to launch mobile 5G in 2019, pitched as the engine driving the next exponential growth opportunities in the business market. Continue reading “Verizon Scopes Out Vivid 5G Future”