It’s has been over a month since the Mobile World Congress (MWC) in Barcelona and it seems like a good time to review what I learned there. First, I was amazed by the prominence of mobile accessory vendors: from tablet bags to smart phone covers. Second, while IoT and M2M were mentioned, they were relegated to a narrow strip in the back of Hall 2. Taking both of these facts together, it appears that the mobile accessory business is for real and IoT is all hype.
So, are all these news stories about trillion-dollar business opportunities in IoT just stories? Most likely the truth is that no one has yet figured out how to make money with IoT but everyone wants to make sure that they are at least seen to have a plan – just in case it does take off. As if to prove this point, ZDnet made a very different assessment of M2M at MWC. I went into more detail on these issues during my recent interview with DeviceLine Radio.
Personally, I firmly believe in the disruptive potential for IoT. It will be disruptive because it will break down the separation between manufacturing industry on one side and IT industry on the other. Manufacturing companies like GE, Bosch and Siemens will increasingly see IT – and Big Data in particular – as a core competency they will need to master in order to sustain a competitive advantage. Simply outsourcing to IT companies will no longer suffice.
We can clearly see this developing as, for example, Bosch is readying its Internet Application Platform and GE is aggressively building out its Silicon Valley presence. At the same time IT companies are trying to position themselves as natural partners for manufactures or as integrators of smart things. Credit has to go to IBM, which has been pushing this trend as part of its Smarter Planet campaign, way ahead of other players.
Meanwhile, telecom carriers are also struggling to decide what IoT will mean for them. It’s easy to see how telecom’s core business can be seen as just a set of “dumb” data pipes. The challenge for this sector will be figuring out how to leverage its considerable assets, like cellular networks, global roaming and integrated billing, to create M2M business platforms. I think that Big Data analytics on the data piped through their network will have to be part of it.