Enterprise IoT Adoption Low, But Gaining Momentum, Says Verizon-Backed ABI Report

Enterprise adoption of the Internet of Things is still "relatively low" but “starting to gain momentum,” said an ABI Research report commissioned by Verizon Enterprise Solutions. The number of business-to-business IoT connections will quadruple between 2014 and 2020, rising to 5.4 billion connections globally, said the report. Social media and mobile technology are transforming consumer and citizen expectations about IoT, and the dropping costs of sensors, connectivity and processing power are making IoT a more viable proposition to a broader set of organizations, it said. An improving economy has brought new entrants in the enterprise market that are using IoT as a “roadmap to improve their customers' experiences, accelerate growth and create new business models that are driving societal innovation,” said Mark Bartolomeo, Verizon vice president-IoT Connected Solutions. In the automotive industry, 14 car manufacturers with 80 percent of the worldwide market have a connected car strategy, Verizon said. More than 13 million health and fitness tracking devices will be introduced in the workplace by 2018 as part of employer-sponsored wellness programs to help reduce the cost of healthcare, it said, and by 2025 smart cities capabilities will become a “critical consideration” for companies deciding where to invest and open facilities, “due to their impact on operating costs and talent availability." Verizon saw 45 percent year-over-year revenue growth in its IoT business in 2014, with 4G LTE activations growing 135 percent, the company said. Verizon estimates just 10 percent of enterprises have deployed IoT technologies extensively. That indicates many organizations “are in a pilot phase or are waiting for more insights from early adopters,” said the company, including the automotive market. More than 600 million vehicles worldwide aren't connected to a network, according to Verizon data. While the core technologies powering IoT -- sensors, cloud computing and intelligent networking -- are familiar to most businesses and public sector organizations, formulating a viable strategy and developing IoT solutions can be highly complex, said Bartolomeo. "There's still a lot more work to be done” in creating and ratifying standards, he said. "As machine-to-machine technology adoption continues to move downstream with millions of endpoints connected, it will change how we see cybersecurity and privacy." Verizon’s role is to “help key decision makers tackle complexities like security head-on by encouraging a more proactive posture in order to create value for their organizations while reducing potential risk," the company said.