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IoT Will Make Up 43 Percent of IT Budgets by 2020

IoT adoption is rapidly increasing but...

Internet of Things adoption and integration are becoming a significant priority for U.S.-based companies , according to a new study from Machina that focused on U.S.-based companies.

“With the vast majority of US companies expecting to have IoT solutions in place by year-end 2018, the coming years will be a remarkable period of opportunity for the IoT vendor community to help companies integrate IoT into their operations and products. The global ramifications of these results are highly encouraging,” said study author Andy Castonguay in the announcement.

38%of US companies are actively using IoT solutions, and 81% percent will have one or more deployed by the end of 2018.

IoT is expected to become more and more a priority for businesses and the study estimates it will take up 43 percent of IT budgets by 2020. There is a growing acceptance that the data that can be collected from IoT devices can great value for all facets of a business, from product development to customer service.

The study found that IT execs are responsible for leading IoT adoption and decision making at 54 percent of U.S. companies. Roughly 48 percent of companies said they are looking to service providers and systems integrators to assist in their deployments.

Respondents cited the complexity of integration and implementation of IoT projects as their biggest concern. While security was cited as a concern, respondents cited the complicated IoT ecosystem, highly fragmented into different technologies, platforms and vendors, as a bigger worry.

While companies said they view data analytics as a crucial tool to improve product performance and customer engagement, only 15 percent said they are currently leveraging their IoT data this way. But 69 percent of respondents said they have plans to do so.

Welcome to data era.

Data, data, data. Where to perform analytics is just one of many questions that enterprises are trying to answer as they explore industrial IoT, IDC analyst Michael Palma said. It’s there alongside questions like how many sensors to put on a device, how often to take readings and how much to let a piece of equipment manage itself.

There's many questions regarding storage capacity and scalability, and of course security problems are always there, that's why other technologies are trying to fill the gam. Specially blockchain.

The driving forces for wide spread network adoption in IoT can be summarized as follows:

  • High Data rate
  • Low Prices of data usage
  • Virtualization (X — Defined Network trends )
  • XaaS concept (SaaS, PaaS, and IaaS)
  • IPv6 deployment

The most cited reason for adopting IoT solutions was competitive advantage.

Challenges facing network implementation in IoT

  • The enormous growth in number of connected devices
  • Availability of networks coverage
  • Security
  • Power consumption

Many around the world are actively exploring and developing solutions for security, I believe with every legitimate node being registered on the blockchain, devices will easily be able to identify and authenticate each other without the need for central brokers or certification authorities, and the network will be scalable to support billions of devices without the need for additional resources.

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