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IOT remains top business focus: Vodafone

Regina Pazvakavambwa
By Regina Pazvakavambwa, ITWeb portals journalist.
Johannesburg, 26 Jul 2016
Within the next two years, the majority of businesses will be using IOT and just adopting it will no longer be a differentiator, says Vodafone.
Within the next two years, the majority of businesses will be using IOT and just adopting it will no longer be a differentiator, says Vodafone.

The Internet of things (IOT) is increasingly at the heart of organisations' IT and corporate strategies and will be critical for the future success of any business in their sector.

This is according to Vodafone's fourth annual IOT Barometer Report, which surveyed 1 100 business leaders from 17 countries globally including SA.

The report says IOT remains a top business focus, with adopters increasing their investment - and those that make a bigger commitment seeing better results.

Adopters assign 24% of the entire IT budget to IOT - on par with mobile, cloud and analytics, adds the report. Also businesses that allocate more budget and run more projects see stronger return on investment, says Vodafone.

The report points out many businesses are still just dipping their toes into the water of IOT, with proofs-of-concept and trials.

For other more progressive companies, it has become a strategically critical issue permeating the entire operation as they recognise that the additional capabilities, feedback mechanisms, closer client relations and business models facilitated by the IOT will be essential to their future success.

IOT adopters have seen a 21% increase in the generation of revenue streams and reductions in system downtime (20%). Organisations are also seeing optimised asset utilisation and reduced cost through automation as well.

Sixty-eight percent of adopters who are high performers are more likely to set "clear targets" or very specific goals for their IOT projects, says Vodafone.

The report notes within the next two years, the majority of businesses will be using IOT and just adopting it will no longer be a differentiator.

Also, IOT will increasingly be treated as indistinguishable from business processes and will become part of the fabric of the organisation, it adds.

"It will be seen as an intrinsic feature of a modern warehouse system, company car fleet or security solution, for example. We expect business-led approaches to procuring and managing IOT - including end-to-end outsourcing - will dominate, in order to drive measurable business results and more effective governance."

At the same time, the report believes IOT, cloud, mobile and analytics will increasingly be conceived of and purchased together as elements of an integrated solution, says the report.

Enterprises that have, with the explicit backing of senior management, committed their future to IOT will inevitably assign greater resources, and the impact of their schemes will almost inevitably be proportionately greater, it notes.

The report also cautioned organisations about IOT security.

It says although IOT may be managed as part of the business, just like cloud or mobile, it's still a technology and cyber security will remain a major consideration.

"Today, IOT security is dominated by fear of the unknown; we expect that this will shift as businesses recognise the value of data and the need to manage it."

Vodafone notes IOT will be absorbed into the overall IT security practices and businesses will invest in actively protecting it as a mission-critical asset.

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