In a recent GSMA Intelligence Research Brief, we examined the lessons from GE’s Predix spin off and Samsung ARTIK’s closure. Both announcements underlined an overlooked challenge in the IoT market: scale alone is not a precursor for success.
Driving IoT adoption is as much about customer education as it is technology. We highlighted GE’s peers such as Siemens, Bosch, or PTC for having expanded their portfolio capabilities through closer cloud integration as demanded by their enterprise customers. Cloud infrastructure, while a key component of any IoT solution, is still only a technology solution. AWS, Azure or IBM may seem ubiquitous in any IoT discussion, but customer education is equally important.
We fully expect a newly liberated GE Predix to stir market demand for analytics and applications, especially in their industrial markets, because customers need to learn how to turn accumulated data into insights. Industrial platform vendors such as GE, Bosch, Siemens and PTC have the granular understanding of customer requirements that can drive the necessary education.
The ubiquity of cloud vendors in any digitalisation effort
2018 was an important milestone year for IoT with new market entrants, M&A and pragmatic partnerships with cloud vendors. For example:
If we consider 5G for enterprises to be an important turning point for telecoms companies in terms of network architecture and new service delivery modes, then cloud will become even more entrenched in this fully autonomous future. The question is how should the broader ecosystem co-exist with cloud vendors?
Bring customers to the table
An important lesson from the announcements by GE and Samsung is that customer education and technology are equally important. The broader ecosystem compete with cloud vendors by being more effective in bring customers to the table:
The unusual partnership between Sprint and Ericsson bears close monitoring. Announced in September 2018, Sprint IoT is building a dedicated IoT network with Ericsson and bills revenue not from network traffic, but through APIs that encourage the IoT community to build applications on the network. The desired outcome of smarter collaboration is to drive IoT adoption by developing applications that matter to customers.
– Yiru Zhong – lead analyst for IoT and Enterprise, GSMAi
The editorial views expressed in this article are solely those of the author and will not necessarily reflect the views of the GSMA, its Members or Associate Members.Subscribe to our daily newsletter