Praveen Ramanathan

President & CEO

The Internet of Things (IoT) – The Hype is Real

President & CEO

Back in 2012, the term Internet of Things (IoT) was synonymous with Google Glass and wasn’t making a significant impact for organizations to explore a strategy. Fast forward to present day, there is incredible positivity around IoT and the impacts it will have on multiple business units. Several organizations have projected global revenue and the installed base of connected devices or “things”. International Data Corporation (IDC) predicts over $7 trillion by 2020. It also predicts that the installed base will be 32 million objects. Gartner predicts 33 billion objects.  Mobile phones, laptops and PCs, and tablets comprise only 6-7 billion (50%) of those totals. An article in MIT Technology Review stated that there will be approximately 28 billion connected devices by 2020, 50% of which will be in addition to smart phones, laptops and PCs.

You often hear the word “hype” connected to IoT. It is not hype. Consumer products and industrial companies like ARM, IBM, GE, Apple, Cisco, Intel and Amazon jumped in early. In 2014, Google bought Nest Labs (think “connected home”) for $3.2 billion and Dropcam (home security cameras) for $550 million. Just two months ago, Google launched its Nest Cam security camera as part of its home automation home product line.

Global leader in blood management, Haemonetics is leveraging IoT in the medical device industry with their software platform HaemoCloud. Their software connects designed to connect all Haemonetics’ devices and software, creating total control of the blood management supply chain.

Paving the way in manufacturing, Toyota uses real-time software for error corrections in their manufacturing plants, improving the ability to troubleshoot production issues. In Toyota’s Alabama plant this leveraging of IoT has minimized rework rates and reduced the amount of scrap produced.

In future posts I’ll be writing about what industries are leading and benefiting from IoT, and how IoT will change current business models.