7 things that should be known about the Internet of Things in 2016

The development of the Internet of Things requires the participation of all walks of life, and it requires the support of the national government and the support of relevant laws and regulations. The development of the Internet of Things has the scale, extensive participation, management, technical, and physical attributes. And other characteristics, what are the 7 things we should know about the Internet of Things 2016?

1. We are entering the second wave of the Internet of Things

To say the second wave of the Internet of Things, we must first understand what the first wave of the Internet of Things is. The original Internet of Things is just connecting objects and trying some work (the first wave), and now it is developing to start exploring IoT-based. New business model (second wave).

The business model currently under discussion can basically be summarized as "anything is service". SAP emphasizes that “sports-as-a-service” is provided by sporting goods manufacturers, while others are discussing “energy-saving as a service” or “transport as a service”, all of which can be achieved through the Internet of Things. ADT's “Smart Home Security as a Service” allows you to stay safe while you are on vacation. Microsoft is using a jet engine that supports Rolls-Royce as a service.

In some ways, this development is similar to the transformation of enterprise software, from an indefinite license to a "software as a service."

7 things that should be known about the Internet of Things in 2016

2. Internet of Things may be touted excessively

Even if we said that the Internet of Things has already ushered in the second wave, we should also admit that the Internet of Things has been over-hyped and overstated. Despite the fact that some of the show's staff were full, there were still a lot of potential customer visits in the IoT showrooms that were lower than expected. Some people will argue at this point that most customers go to a vertical meeting, but this at least reflects some signs: the development of the Internet of Things is not as fast as some people expect. This is also in line with our current IoT market model (for example, when we analyze the IoT platform, we talk about millions of dollars, not a multi-billion dollar market).

3. Every company has an IoT platform

If you say that your company has an IoT platform, it may be just an IoT provider. In addition to our familiar GE, Microsoft, Nokia, etc., Hitachi, Hewlett-Packard, Schneider Electric have launched their new IoT platform. Hitachi also said it would invest $2.8 billion in IoT-related activities over the next three years.

The Internet of Things platform is often mentioned. Most vendors not only emphasize their IoT platforms, but also claim that their platforms are secure, device-independent and end-to-end. Cloud providers like Microsoft, electronic distributors like Avnet, or M2M communication module makers like Gemalto, and even semiconductor companies like Dialog are actively marketing their IoT platforms. Even if the market information is consistent, the supplier will adopt a slightly different approach at each level, which will increase confusion.

Last year we counted 260 IoT platforms worldwide. Recently we are updating this list of platforms, and now there are nearly 400 IoT platforms around the world.

4. IoT security is considered part of the stack

A positive development is that IoT security is getting more and more attention. It is no longer considered as an afterthought factor, but a core element of the IoT solution. Some startups such as Electric Imp, Mocana, and Zingbox have demonstrated specific IoT security solutions. Some of them are taking a holistic approach, while others focus on different aspects of the safety chain. While the security landscape is still extremely fragmented, it is clear that the Internet of Things requires a new trust model—the assumption of removing security perimeters and running in an untrusted environment by default.

5.Mesh is an alternative network for LPWAN

A mesh network is a communication network between devices and devices, not a network that connects devices to the Internet. SilverSpring Networks introduced their new Starfish connectivity solution (based on Wi-Sun Mesh) to provide network support for smart meters and smart cities. From a technical point of view, for low-power devices that don't require a lot of bandwidth, Mesh networks are an alternative to the hot LPWAN (such as Sigfox or Lora) on the market—both technologies have their own advantages and disadvantages.

6. Establish an algorithm as an asset

Most of the discussion about the Internet of Things now revolves around which projects can make money, who can profit from it, and so on. However, for the idea that using data as an asset and serving as a driver of ultimate value, SAP's Tanya Rueckert proposed a new kind of cognition: using algorithms as an asset.

According to this concept, some large IoT platforms have gradually shown a transition to preset templates for specific application cases. By using preset algorithms and configurations, these templates enable users to build specific IoT solutions faster, easier, such as preventive maintenance, asset stewardship, and more. It remains to be seen whether different IoT vendors can really differentiate themselves by using more efficient and better algorithms. However, some of the default templates that vendors offer for their specific needs cases may not be useful to other suppliers, and this divergence may become a point.

7. Value-based results can make the Internet of Things take off

Based on the overwhelming publicity of the Internet of Things and its limited adoption in some areas, there are many IoT conferences discussing how vendors are getting the IoT outbreak. One possible outcome is the value-based IoT output. It seems that more and more vendors are deploying IoT solutions in areas that are shared with their original interests.

As a result, some vendors are charging for IoT solutions based on customer needs, not based on blind efforts. For example, if a smart product manufacturer realizes new revenue by marketing merchandise as a service, the IoT provider should share the value-added portion of the revenue with him. With this setup, original equipment manufacturers and other companies will have lower risk and a more reliable return on investment when developing an IoT solution, which in turn will help accelerate their IoT deployment.

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