Internet of Things (IoT)

By Surendar CP, September 27, 2016

The emerging Internet of Things (IoT), essentially the world of physical devices connected to the network/Internet from wireless enabled technologies to machines & equipment’s at home, vehicles, industries, retailers, etc. is expected to witness a vast momentum in activity. More so, the creativity seen in this space was witnessed initially in the late 1990, with our own ATM’s, Point of Sale (POS) devices, Vehicles Tracking System (VTS/IVMS) etc. These are exciting times ahead, with the evolution of 2G to 3G, and now 4G wireless connectivity, the last mile interface challenge has been sorted out, and the massive explosion in the smart device, and the rapid progress from feature phones/devices to smart devices, from keys to touch, and the adaptation by individuals and enterprises, various innovative and creative offerings are being brought to the market by entrepreneurs and VCs.


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The space looks like boisterous with smart hobbyists, new startups and large corporations alike, that are all eager to be a part of what could be a huge market, with all sorts of enabling products and technologies.

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* The most important element for any company is to find its position in the value chain. The position in the value chain would be to define its relevance, strategy and opportunity. The player capturing the biggest pie of the value chain should ideally take a lead in forging partnerships. The platform providers are best positioned to lead as they capture up to 50% of the value.

The concept of the Internet of Things is now in the process of becoming a reality thanks to the confluence of several key factors mentioned in the chart above.

  1. While the concept is still challenging, it is easier and cheaper than ever to produce with technologies like 3D printing, and with easier and cheaper prototyping now in the reach, there is a considerable amount of de-risk in the early phase of creating hardware.
  1. The world of wireless connectivity has dramatically evolved over the last few years. The mobile phone and tablet / phablets, are now coming close to becoming supercomputers in everyone’s hands, and are eventually becoming the universal remote control of the Internet of Things. Assured bandwidth and internet connectivity in most locations including remote locations, is becoming a reality with the governments thrust on digital India and free Wi-Fi available in public places; Also, with Bluetooth becoming a standard on all devices, and 4G becoming a standard offering by all service providers, this evolution, the “Internet of Things”, has a more vibrant and promising future ahead, as the basis of IOT is connection via M2M (machine to machine) protocols, rather than the Internet itself.
  1. The Internet of Things is able to leverage an entire infrastructure that has emerged in related areas. Cloud computing enables the creation of “dumb” (simpler, cheaper) devices, with all the intelligence processed in the cloud. Big data tools, often open sourced (Hadoop), enable the processing of massive amounts of data captured by the devices and will play a crucial role in the space.

Different Verticals in IOT space:

Unlike the Big Data space, where the action is gradually moving from core infrastructure to vertical applications, the Internet of Things space is seeing a lot of early action directly at the vertical application level. Some notable players have adopted a deeply integrated vertical strategy where they control key pieces of the product, including both hardware and software, in order to have complete control over the end-user experience.

Home automation in general has become the focus for many offering Internet of Things, with some of the most exciting startups in the space trying to create a niche position in this highly lucrative space.

Beyond consumer, B2B/enterprise vertical applications of the Internet of Things, offers them a host of solutions that can improve productivity and offer better visibility on the action. In the market, the consumer, having tried and tested home grown/on premise solutions, find these less expensive IOT offerings a better value for money and gives them to adopt, as per use and outcome, instead of the capital expensive, on-premise solutions offered before.

The B2B segment holds considerable promise in a number of areas such as manufacturing, transportation, healthcare, retail and energy. Some of the clearest revenue opportunities for IoT startups are in the enterprise area.

Different Horizontals in IOT space:

While a lot of the action is happening at the vertical application level, the ultimate prize for many ambitious players in the space is to become the software platform upon which all vertical applications in the Internet of Things will be built. For example, several of the home automation providers provide a software platform, and seem to be leveraging their vertical focus as a way to kick start activity on the platform.

Large corporations are very active in the space and are developing their own platforms. Telecom Carriers have a large opportunity in this area as well, and that is why we can witness R Jio smartly launching a data offering and creating a stir in the market.

The IOT space is extraordinarily exciting, but still very much in its infancy; the early movers will definitely have the first mover advantage but would need to pinch their pockets initially. Having said that, they also need to identify their core strength, and the vertical they would like to invest their time and effort in, whether it is the consumer space (Which is high revenue and high investment) or in the B2B enterprise vertical (which is always a bit slow to adopt and adapt)

Note: Most parts of the article have been from my own experience in this field and researching various sources, and is also inspired by an article by Matt Turck MD – First Mark Capital.

Author Profile
Surendar CP

A post graduate in business management with 25+ years of experience in enterprise & B2B sales and business development, account management and channel development. He has worked in senior level and mid-level positions in the IT Services,Telecom,Consulting,Training & IT Hardware industry in India and Middle East.

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Surendar CP

A post graduate in business management with 25+ years of experience in enterprise & B2B sales and business development, account management and channel development. He has worked in senior level and mid-level positions in the IT Services,Telecom,Consulting,Training & IT Hardware industry in India and Middle East.

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