D/D #13: What Exactly is This Internet of Things?

Download D2D #13 Here

This report is my attempt to lay down some boundaries about what the “Internet of Things” (IoT) is going to look like. There are some wild ideas out there given that IoT is largely a creation of the marketing department. As real companies start to build real products, there are going to be trade-offs and real-world limitations.

I wanted to look at what really constitutes an IoT module. What will connect the ‘Things’ to the Internet. I think these modules will each have some form of analog interface (a sensor or a switch). They will have some form of digital logic, a topic which looks set to be very controversial. And they will need some form of wireless connection (Wi-Fi, Bluetooth, LTE, many others etc).

Those are all pretty simple things. However, the more I look at the combination of those simple things, the more complex the outcomes. There is not going to be a single operating system or platform to unify all of those devices. Instead, each industry or ecosystem is likely to have its own set of solutions. Just as we talk about “Healthcare Software” or “Human Resources Software”, we are likely to have a “Manufacturing IoT”, and an “Agricultural IoT”. Maybe Apple or Google will wrap up the “Home IoT”, but for everything else I think it is unlikely that we will find a one-size-fits-all solution that we can then label “The IoT”.

This is going to make it very hard to invest. Judging by the multiples being paid for any public or private company with any affiliation with IoT, there is already a surplus of demand over supply of investment outlets. This is also true for component suppliers looking to capture a new wave as smartphone growth slows. Companies going after this market will have to be careful which industries they court and which ‘standards’ consortia they back. Even picking the right ones, will not guarantee a market of sufficient scale to merit the effort. There are too many ways to approach these markets.

Finally, it is important to keep in mind that the overwhelming majority of IoT deployments will have to be retro-fits of existing machines. It will not seem that way at first, but for IoT to truly gain its full potential will require years of work.

I think the ideas behind ‘IoT’ are very powerful, but the reality will take more work than the rosy predictions would lead us to believe.

Download D2D #13 Here

10 responses to “D/D #13: What Exactly is This Internet of Things?

  1. Pingback: What is the Internet of Things?  – Some Rough Math – DIGITS to DOLLARS·

  2. Pingback: IoT in the Home – You’ll know we’ve have arrived when no one uses the term “Educating the Consumer” – DIGITS to DOLLARS·

  3. Joanthan

    you are a tease – you say

    “A key hurdle for IoT is security. I will! return to this in a separate section below.”

    but there is no separate section.

    I think this is a key topic and one which is deeper and more complex than it at first seems. I’d love to see your take on this.

    • Roger,
      I admit it. I did not complete my assignment.
      But when I hit 6,000 words on that note, I realized it was time to hit publish or risk never finish a note that I have had rolling around in my head for five months.
      And not for nothing, I also came to realize that IoT security is a subject that probably requires 6,000 words of its own.
      I cannot promise that treatise, but I do plan to write more blog posts on this topic.
      Someday
      j

  4. Pingback: Why the Disconnect? Public vs. Private investors on IoT – DIGITS to DOLLARS·

  5. Pingback: IOT: Wearables are fine, but what I really want is a way to kill chickens. – DIGITS to DOLLARS·

  6. Pingback: Where are the IoT dollars? – DIGITS to DOLLARS·

  7. Pingback: The Contortions of the Consumer Electronics Market – DIGITS to DOLLARS·

  8. Pingback: The Conspicuous Silence from Microsoft on IoT – DIGITS to DOLLARS·

  9. Pingback: How IoT is going to ruin your career | DIGITS to DOLLARS·

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s