Eager to cash in on the vast potential of IoT-based data storage and analytics, public cloud vendors are diving headfirst into the IoT market, offering enterprises everything from individual building blocks to fully managed services and various combinations in between. everything.
The amount of data expected to be generated by IoT devices is staggering. IDC predicts that by 2025, there will be 55.9 billion connected devices worldwide, 75% of which will be connected to IoT platforms. IDC estimates that by 2025, the amount of data generated by IoT devices will reach 79.4 zettabytes.
Hyperscalers certainly have the ability to process large amounts of data, as well as the machine learning and artificial intelligence expertise to perform analytics. Most businesses don’t, and even if they do, organizations realize that machine-generated data is fundamentally different from human-generated data and should be handled differently.
For example, business data (customer data, business process data, application and software development data) has intrinsic value. It needs to be classified, protected and stored; it also needs to be available, searchable and recoverable. But in many IoT scenarios, machine-generated data is only meaningful when something unusual occurs, such as an engine overheating or an intruder spotted on video surveillance. The rest of the time, the data is of little value, so it may not make sense to allocate valuable data center resources to such uses.
The preferred approach is to perform as much analysis as possible closest to where the IoT data is generated—which means the edge. IoT at the edge enables companies to get real-time results, avoid bandwidth issues and reduce the costs associated with transferring all data back and forth to the cloud.
Disruptors such as ClearBlade, FogHorn, and Crosser already exist, offering “edge-native,” cloud-agnostic, low-code or no-code IoT platforms that are attractive because they offer flexibility, customization, low-cost Cost and simple development tools – they avoid cloud vendor lock-in.
But the competition for cloud providers doesn’t end there. Companies such as SAP, Salesforce and Nutanix have IoT platforms. Cisco and Huawei are entering the Internet of Things from a device and network perspective. In the field of industrial IoT, PTC, Siemens, Rockwell, Schneider Electric and Emerson Electric each have their own IoT platform.
In response, the cloud-first incumbents—Microsoft Azure, Amazon AWS, and IBM Watson—have extended their IoT platform capabilities from the cloud to the edge, and today they have comprehensive IoT offerings.
“There are more than 400 IoT platform vendors offering a suite of services to build IoT solutions, but only AWS, IBM and Microsoft can build the broadest IoT technology stack,” said analyst Kateryna Dubrova. ABI research. The stack includes device connectivity, device management, data management and storage, data processing and streaming, event management, analytics, machine learning, artificial intelligence and visualization.
For example, Amazon provides a set of services, including the FreeRTos operating system for programming microcontrollers; Greengrass for local computing, messaging, data caching, and machine learning inference; IoT core for connectivity; device security defense; IoT device management; and analytics tools such as IoT Analytics, Events, SiteWise, and Things Graph.
In addition to their own services, the strategy adopted by cloud providers is to build a rich ecosystem of partners, marketplaces, development platforms, and APIs so that they can provide as much flexibility and as many avenues as possible— — As long as data can require higher levels of processing it will eventually end up in their cloud, said Dilip Sarangan, senior director of research at Frost & Sullivan.
Neil Shah, vice president at Counterpoint Research, said major cloud vendors are offering fully managed end-to-end IoT deployments for “maximum value capture.” But they are also covering their bases by providing open interfaces and working with other players to address enterprise concerns about vendor lock-in.
When you think about various types of IoT scenarios and vertical industries like connected cars, smart cities, smart homes, manufacturing, oil and gas or healthcare, video surveillance, video surveillance, etc.
Dubrova added that one thing cloud vendors lack is expertise in specific verticals. “Cloud vendor analytics toolsets tend to be very horizontal and limited – that’s where partnerships play a key differentiator.” On the other hand, software developers and IoT ecosystem companies are able to leverage the capabilities of major cloud service providers by Offer services under the umbrella to capitalize on their niche position.
From a business perspective, Dilip says there are multiple entry points. Some companies may expand existing relationships with IBM, Microsoft or Amazon and pursue fully managed services. Others will work with existing software or hardware vendors as part of an upgrade cycle or digital transformation program and let them figure out the back-end logistics. Some companies may purchase turnkey IoT applications from startups; some may outsource their IoT projects to third parties such as Accenture or DXC.
Sometimes, a company might start its IoT journey with craft beer, like Joe Vogelbacher, founder and CEO of Sugar Creek Brewing Co. in Charlotte, North Carolina.