IoT Insights and Opportunities

Copyright (c) 2016 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org

REMINDER: The complete 36-page 2016 IoT Insights and Opportunities report can be viewed free of charge at CompTIA.org (with simple registration)

0

10

20

30

40

50

Billi

ons o

f Thi

ngs C

onne

cted

to th

e In

tern

etProjecting the ‘Things’ Behind the Internet of Things

50.1 billion

34.8 billion

22.9 billion

14.4 billion

8.7 billion

0.5 billion0.1 billion

IoT primarily comprised of mobile devices and consumer-oriented ‘things’

Industrial and emerging ‘things’ increasingly captures a larger share of IoT market

Sources: Group SJR | Cisco | CompTIA

From 2014-2020, IoT grows at an annual compound rate of 23.1% CAGR

The Evolving Internet of Things Ecosystem

Regulators / Government

Devices / Objects

Sensors / Chips

Networks

Platforms

IT Services / Management

Carriers / Network Providers

SecurityData

AnalyticsIntegration /

Solutions

Standards & Protocols

Consortiums / Industry Groups

Cloud Service

Providers

Software / Apps

SERVICES

SOFTWARE / CONNECTIVITY

RULE

SHARDW

ARE

Source: CompTIA

For more on the IoT ecosystem, please see CompTIA’s Slideshare deck “The Internet of Things Ecosystem.”

IoT Moves from Idea to Practice

27%

33%

23%

15%

A NET 6 in 10 organizations report having some type of

IoT initiative underway

Funding IoT Initiatives45% New budget allocation

36% Existing IT budget

10% Budget repurposed from cost savings

7% Combination of sources

Source: CompTIA’s Internet of Things Insights and Opportunities study | Base: 512 U.S. end-user firms

Many Companies May Profit from IoT

Sensor and chip companies

Telecom carriers

Platform/ecosystem providers

Integration

App developers

Device companies

Networking equipment/software

Data analytics/Big data

IT solution providers/MSPs

23%

24%

26%

28%

30%

33%

34%

35%

36%

Source: CompTIA’s Internet of Things Insights and Opportunities study | Base: 349 U.S. channel firms

IoT Revenue Expectations Convey Optimism

Already making money

Expect to make money in

next_x000d_12 months

Expect to make money in

next_x000d_1-2 years

Not sure Unlikely

15%

25%22%

27%

12%15%

40%

26%

14%

5%

36%39%

16%

6%3%

Small Channel Firms Medium Channel Firms Large Channel Firms

Source: CompTIA’s Internet of Things Insights and Opportunities study | Base: 346 U.S. channel firms

Perceived Benefits of IoT

Automating factory/ transportation/supply chain

Staff productivity gains

Automating business processes

New/better data for decisions

New product/service revenue

Cost savings/higher efficiency

Better asset visibility/monitoring

New/better customer experiences

24%

30%

32%

37%

37%

39%

40%

41%

Source: CompTIA’s Internet of Things Insights and Opportunities study | Base: 345 U.S. channel firms

From the perspective of channel partners

Channel Firm Challenges

55% Developing expertise

50% Initial costs

51% Educating customers

49% Choosing business model

49% Choosing vendors

47% Cash flow considerations

45% Optimizing sales/marketing

Perceived End-User Challenges

49% Cybersecurity risks

37% Legacy interoperability

36% Ongoing costs

36% Steep learning curve

34% Quantifying ROI

32% Upfront investment

21% Inability to absorb data

Channel Firms See IoT Challenges for Them and Their Clients

Source: CompTIA’s Internet of Things Insights and Opportunities study | Base: 348 U.S. channel firms

37%49%

14%

Companies Divided on Importance of IoT Security

Benefits of connected devices outweigh concerns

Security/privacy are primary factors to

consider during adoption

Security/privacy are serious hurdles

Source: CompTIA’s Internet of Things Insights and Opportunities study | Base: 347 U.S. channel firms

Word Associations Reflect the Many Facets of IoT

Connected53%

Intelligent System

40%Smart40%

Data Streams36%

Futuristic29%

Machine-to-Machine

27%

Solution Looking for a Problem

25%

Security Disaster

Waiting to Happen

19% Nothing New –

Extension of Internet

16%

Source: CompTIA’s Internet of Things Insights and Opportunities study | Base: 512 U.S. end-user firms

Executives Contemplate How IoT Fits within the Business

37% 61%

2%

Mostly separate and distinct

Mostly about enabling and extending technology for broader organization objectives

Don't know

How Organizations Describe Their IoT Initiatives

64%

31%

5%

Expectations Are High for IoT to Provide Value

Source: CompTIA’s Internet of Things Insights and Opportunities study | Base: 512 U.S. end-user firms

IoT Benefits Matrix: The New vs. Extending the Existing

Cost savings from

operational efficiencies

Value from Improving /

Extending the Existing

Value from Leveraging New

Innovations

New data streamsStaff

prod-uctivity gains

Monit-oring of assets

New customer

experi-ences

Revenue growth

Auto-mating

business processes

Auto-mating factory,

etc. processes

Tech-advanced organizations are more likely to cite the ‘new innovation’ facets of IoT as a key benefit.

Tech-basic to intermediate organizations are more likely to cite the ‘cost saving’ facets of IoT as a key benefit.

Source: CompTIA’s Internet of Things Insights and Opportunities study | Base: 512 U.S. end-user firms

Segmentation of Perceived Benefits of IoT by Sector

Technology OverallMfg.

SectorRetail

SectorGovt.

Sector

Hospit-ality

Sector

Health-care

SectorAMTUC

Sector

Cost savings from operational efficiencies 48% 47% 39% 45% 60% 47% 53%

New / better streams of data to improve decision-making 45% 45% 44% 55% 54% 39% 36%

Staff productivity gains 39% 35% 35% 37% 40% 38% 51%

Better visibility / monitoring of assets throughout organization 37% 45% 39% 20% 31% 37% 40%

New / better customer experiences 36% 32% 38% 31% 40% 39% 38%

Revenue growth from new products or services 33% 38% 42% 20% 29% 32% 33%

Automating business processes 32% 35% 23% 39% 37% 34% 29%

Automating factory, transportation, or supply chain-related processes

28% 38% 27% 24% 31% 21% 29%

*Agriculture, mining, transportation, utilities, and construction

CAUTION: small sample sizes – for directional use

Source: CompTIA’s Internet of Things Insights and Opportunities study | Base: 512 U.S. end-user firms

Most Organizations Report Shortcomings in Their Ability to Manage Security Component of IoT

23%

34% 35%

7%

1%

A NET 57% of respondents believe they are well equipped to managed the security component of IoT

- Larger firms report greater confidence with IoT security than smaller firms (68% vs. 53%).

- Firms self-reporting as cutting edge users of technology also report greater confidence levels than tech laggards (84% vs. 24%).

Source: CompTIA’s Internet of Things Insights and Opportunities study | Base: 512 U.S. end-user firms

IoT Regulatory / Policy Concerns Ramp Up

Tax implication uncertainties

Possibility of having to manage a patchwork of state or international regulations

Challenge of finding necessary legal expertise to navigate IoT regulations

Liability uncertainties

Concern over "questionable" new regulations taking hold

Cost of compliance

23%

32%

36%

41%

42%

51%

Overwhelming, respondents believe IoT cybersecurity safeguards should supersede IoT innovation. And yet, concern over IoT compliance cost and new regulations is high, a sign of a likely disconnect.

Source: CompTIA’s Internet of Things Insights and Opportunities study | Base: 512 U.S. end-user firms

Thank You

Copyright (c) 2016 CompTIA Properties, LLC. All Rights Reserved. | CompTIA.org

REMINDER: The complete 36-page Internet of Things Insights and Opportunities report can be viewed free of charge at CompTIA.org (with simple registration)