IDC FUTURESCAPE: WORLDWIDE IOT 2018 PREDICTIONS - VERNON TURNER, SVP & IOT RESEARCH FELLOW CARRIE MACGILLIVRAY, VP, IOT & MOBILITY NOVEMBER 2, 2017
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IDC FutureScape: Worldwide IoT 2018 Predictions
Vernon Turner, SVP & IoT Research Fellow
Carrie MacGillivray, VP, IoT & Mobility
November 2, 2017
© IDC
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Carrie MacGillivray
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© IDC 2
IDC FutureScape: Worldwide IoT Predictions
By 2020, the potential cybersecurity and physical safety concerns associated with
1
IoT devices will pressure CIOs at G2000 companies to increase IoT security
spending by up to 25%, temporarily neutralizing business productivity gains
Security Blockchain 2 By 2020, up to 10% of pilot and production Blockchain distributed ledgers will
incorporate IoT sensors.
Companywide
1
2 3 By 2020, 50% of all new operating assets will be self-sustaining.
Asset 3
Management
4 By 2020, 30% of G2000 companies will be using data from digital twins of IoT
connected products and assets to improve product innovation success rates and
ORGANIZATIONAL IMPACT
Analytics 9 organizational productivity, achieving gains of up to 25%.
IoT
or business units
5 Over the next three years, worldwide, at least $3.1 billion of IT consulting
departments
Platform
6 services and $11.2 billion of systems integration services will be consumed
Multiple
5 building and implementing IoT solutions.
Services 6 By the end of 2020, close to 50% of new IoT applications built by enterprises will
4 leverage an IoT platform that offers outcome-focused functionality based on
comprehensive analytics capabilities.
10 By 2020, IT spend on Edge Infrastructure will reach up to 18% of the total
or a business unit
Digital Twin 7
8 spend on IoT Infrastructure, driven by deployments of converged IT/OT
department
systems that reduce the time to value of data collected from their connected
A single
Spending
Edge
7 devices.
Infrastructure 5G
8 5G's broad enablement of IoT use cases drives 70% of G2000 companies to
spend $1.2 billion on connectivity management solutions by 2021.
By 2021, 75% of enterprises with a positive IoT ROI will use tactical analytics
9
applications to reduce operating costs, but the 25% that successfully invest
2018 2019 2020 2021
strategically in a decision architecture will increase their revenue share
TIME TO MAINSTREAM
10 By 2021, over 85% (or $1 trillion) of enterprise IoT project investments will be
built on net new technology spending.
© IDC 3
Drivers for IoT
✓ Accelerating DX – Technology-centric Transformation Altering Business and
Society
✓ Pace of Change – Technology Capabilities Enable Sustainable Change at the
Speed of Digital Business
✓ Humans & Machines – The Impact of AI and Automation
✓ Platform Disruption – Unleashing Digital Innovation's Power of Scale
✓ Sense, Compute, Actuate – The New Data-centric Paradigm
✓ Cyber Threats – Theft, Ransom, Cyberattacks on the Rise
✓ Innovation Impasse: Legacy Systems Constraining Transformation
✓ Empowering the Material World - Revolutionized Processes Expand
Technology Reach
For additional details on the above Drivers, please refer to -
IDC FutureScape: Worldwide IoT 2018 Predictions (Doc #US43161517)
© IDC 4
IDC FutureScape: Internet of Things
Predictions Highlights
➢ Prediction 7: IoT and the Edge. By 2020, IT spend on Edge Infrastructure will reach up to 18% of
the total spend on IoT infrastructure, driven by deployments of converged IT/OT systems that
reduce the time to value of data collected from their connected devices.
➢ Prediction 6: IoT and the Platform. By the end of 2020, close to 50% of new IoT applications
built by enterprises will leverage an IoT platform that offers outcome-focused functionality based
on comprehensive analytics capabilities.
➢ Prediction 4: IoT and Digital Twin. By 2020, 30% of G2000 companies will be using data from
digital twins of IoT connected products and assets to improve product innovation success rates
and organizational productivity, achieving gains of up to 25%.
➢ Prediction 9: IoT and Analytics. By 2021, 75% of enterprises with a positive IoT ROI will use
tactical analytics applications to reduce operating costs, but the 25% that successfully invest
strategically in a decision architecture will increase their revenue share.
➢ Prediction 2: IoT and Blockchain. By 2020, up to 10% of pilot and production Blockchain
distributed ledgers will incorporate IoT sensors.
For additional details on the above Predictions, please refer to –
IDC FutureScape: Worldwide IoT 2018 Predictions (Doc #US43161517)
© IDC 5
Prediction 7 – By 2020, IT spend on Edge Infrastructure will reach up to 18% of the total
spend on IoT infrastructure, driven by deployments of converged IT/OT systems that
reduce the time to value of data collected from their connected devices.
✓ Infrastructure leaders will be asked to deliver
solutions that reduce “time to value” from
data collected from connected devices,
beyond “the four walls” of the datacenter.
IT Impact ✓ IT administrators will operate in a dual mode
where they support current-generation apps
and workloads at the Core, with next-gen
apps at multiple Core and Edge locations.
✓ IT teams will embrace a new collaborative
model where they manage a converged
software-defined IT/OT environment.
✓ Explore how IT and OT domains can be
converged, thereby allowing greater sharing of
resources between the teams.
Guidance ✓ Embrace an open software-defined computing
model, in which the dependency of apps
slowly shifts from a rigid platform and location
dependent model to a location independent,
heterogeneous computing one.
✓ Explore how a distributed data management
framework can be made secure from a
governance, risk management, and
compliance point of view.
© IDC 6
Prediction 6 – By the end of 2020, close to 50% of new IoT applications built by
enterprises will leverage an IoT platform that offers outcome-focused functionality based
on comprehensive analytics capabilities.
✓ These outcome-focused platforms
will offer highly configurable
applications with low-/no-code tools
that can be leveraged by non-
IT Impact technical staff.
✓ IT must ensure that the business
views IT as a partner instead of a
potential bottleneck to moving
forward with IoT initiatives.
✓ Form a centralized IoT Center of
Excellence to ensure all IoT
technology purchases are reviewed
Guidance by key stakeholders in the
organization.
✓ View all IoT technology purchases in
the context of how they fit the
broader enteprrise IT architecture.
© IDC 7
Prediction 4 – By 2020, 30% of G2000 companies will be using data from digital twins of
IoT connected products and assets to improve product innovation success rates and
organizational productivity, achieving gains of up to 25%.
✓ LOBs will look to IT to ensure that
simulation, visualization, and analytics
software are available and meet
requirements of the business.
ALM and PLM tools will need to be
IT Impact
✓
integrated so there is seamless sharing of
software code.
✓ Internal partners will expect cleaned IoT
data to be consistently available within the
service lifecycle and product lifecycle
systems for faster response to quality
issues.
✓ Broaden your usage and training of
simulation and visualization tools outside
of design and engineering, to service and
Guidance product management.
✓ Create a team that manages and tracks IoT
data from products and assets through
digital twins, and sits between your cross-
domain engineering team and service.
✓ Share records of these digital twin
simulations and analyzed IoT data
throughout product life to design and
engineering.
© IDC 8
Prediction 9 – By 2021, 75% of enterprises with a positive IoT ROI will use tactical
analytics applications to reduce operating costs, but the 25% that successfully invest
strategically in a decision architecture will increase their revenue share.
✓ Software capable of sending, receiving, and
processing data in high volumes at high speeds is
required.
✓ Machine learning and use of advanced analytics for
IT Impact embedded use in high volume, high speed
production systems is not mainstream and will pose
challenges for organizations that are more familiar
with packaged apps and mature tools.
✓ Building reliable predictions is a work-in-progress
that requires collaboration between developers,
domain experts, and data scientists.
✓ Map your enterprise’s innovation culture to the level
of maturity required to provide the best guarantee of
success.
Guidance ✓ Select the ‘right’ project. The best initial projects have
low decision risk, high repeatability, and narrow
datasets.
✓ Make sure you identify implementation partners with
relevant skills and a stable workforce if outsourcing
development.
© IDC 9
Prediction 2 – By 2020, up to 10% of pilot and production Blockchain distributed ledgers
will incorporate IoT sensors.
✓ Network connectivity and computing power
within the IoT infrastructure will be a core
component of the Blockchain environment,
as transaction latency will become a critical
success factor.
IT Impact ✓ Blockchain and IoT deployments will have to
run at scale – IT systems will have to be able
to calibrate their performance and capacity
as Blockchain’s distributed ledger gets
updated.
✓ i-ERP becomes table stakes for any IoT and
Blockchain implementation.
✓ Avoid initial IoT/Blockchain deployments
that require or interact with highly regulated
Guidance industries (e.g. food safety). Select trials
where IoT/Blockchain solutions work at the
speed of the asset (e.g. shipping or railroad
cars).
✓ Establish an IT/OT integration group that
understands the complexity of security from
both sides of the business.
© IDC 10Q&A
Today’s Speakers Security
By 2020, the potential cybersecurity and physical safety concerns associated with
Blockchain
1
Companywide
IoT devices will pressure CIOs at G2000 companies to increase IoT security
spending by up to 25%, temporarily neutralizing business productivity gains
1
2 By 2020, Up to 10% of pilot and production Blockchain distributed ledgers will
incorporate IoT sensors.
2
By 2020, 50% of All New Operating Assets Will be Self-Sustaining.
Asset 3
3 Management
ORGANIZATIONAL IMPACT
4 By 2020, 30% of G2000 companies will be using data from digital twins of IoT
connected products and assets to improve product innovation success rates and
Analytics 9
IoT
or business units
organizational productivity, achieving gains of up to 25%.
Vernon Turner
departments
Platform
5 Over the next three years, worldwide, at least $3.1 billion of IT consulting services 6
Multiple
SVP & IoT Research and $11.2 billion of systems integration services will be consumed building and
implementing IoT solutions.
Fellow By the end of 2020, close to 50% of new IoT applications built by enterprises will 5
6 leverage an IoT platform that offers outcome-focused functionality based on
comprehensive analytics capabilities.
Services
By 2020, IT spend on Edge Infrastructure will reach up to 18% of the total spend on 4
7 IoT Infrastructure, driven by deployments of converged IT/OT systems that reduce
the time to value of data collected from their connected devices.
10
or a business unit
5G's broad enablement of IoT use cases drives 70% of G2000 companies to spend Digital Twin
8 $1.2 billion on connectivity management solutions by 2021. 8
department
A single
By 2021, 75% of enterprises with a positive IoT ROI will use tactical analytics Spending
9 Edge
applications to reduce operating costs, but the 25% that successfully invest
strategically in a decision architecture will increase their revenue share
Infrastructure
7 5G
Carrie MacGillivray 10 By 2021, over 85% (or $1 trillion) of enterprise IoT project investments will be built
on net new technology spending.
VP, IoT & Mobility
2018 2019 2020 2021
TIME TO MAINSTREAM
© IDC 11Meet the Analysts Click here to learn more about all of IDC’s
VERNON TURNER CARRIE MACGILLIVRAY
SVP & IoT Research Fellow Vice President, IoT
FutureScape 2018 Predictions
vturner@idc.com cmacgillivray@idc.com
@vernonxt @CMacIoT
USA USA
STACY CROOK JEFFREY HOJLO
Research Director Program Director
scrook@idc.com jhojlo@idc.com
@stacykcrook @jeffhojlo
USA USA
GARD LITTLE MAUREEN FLEMING
Research Director Program Vice President
glittle@idc.com mfleming@idc.com
@gardlittle @maureencfleming
USA USA
HEATHER ASHTON ASHISH NADKARNI
Research Manager Program Director
hashton@idc.com anadkarni@idc.com
@hastonIDC @ashish_nadkarni
USA USA
MARCUS TORCHIA KEVIN PROUTY ROBERT WESTERVELT
Research Director Vice President Research Manager
mtorchia@idc.com kprouty@idc.com rwestervelt@idc.com
@smartgridpro @KevinProuty @rwestervelt
USA USA USA
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