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IoT set to spur major customer investment

The speed with which IoT has arrived in the enterprise might have caught some users by surprise but by the end of the decade almost half are expected to have adopted the tech

The concept of the Internet of Things feels as if it has been around for ages but the reality of more than a laptop, tablet or smartphone connecting to the corporate internet appears to have caught quite a few customers off guard.

Although research from managed services player Managed 24/7 indicates that customers are getting ready for IoT the speed of events has been a surprise for some users and the impact is being felt on the corporate infrastructure.

Only around a quarter of those quizzed by the MSP felt confident that their network security would hold and a only a similar percentage were able to talk about the chances of their IT strategy being able to support business objectives.

Where the problems are already being felt though is not just in security and strategic relevance but in network performance with 80% of firms reporting an IT or telecoms outage in the last three years.

“Our research shows that, so far, around 25% of UK companies have rightly identified the need to adopt working processes that consider IoT deployments, and implemented an IT strategy they are confident in as a result. However, the vast majority still have some way to go before they are ready to take on today’s challenges, let alone those involved in managing the Internet of Everything," said John Pepper, CEO and founder of Managed 24/7.
“The implications of systems outage are more significant than ever; by the end of 2016 alone, Gartner predicts more than six billion connected devices. Without a proactive, CIO-led approach to addressing this expansion outside traditional IT deployments, organisations will be left open to risk. Failure to make the transition from the five nines model of the past to a predictive, proactive model of today could seriously jeopardise operational performance," he added.

The hype around IoT is only going to ramp up this year and that should not only translate into revenue opportunities for the channel but for the UK economy more generally.

A report that has just landed from Cebr and SAS predicts that big data and IoT will add £322bn to the UK economy in the next four years and should create 182,000 new jobs.

Specifically looking at IoT the survey expects it to add £81bn to the UK economy by 2020, even though it is starting from a fairly low adoption rate, just shy7 of half of British businesses are expected to have started using Internet of Things technologies by the end of the decade. The rise of smart homes and wearable tech are expected to drive the development of the market.

“The combined benefits of IoT and big data will fuel our economy like nothing else,” said Mark Wilkinson, SAS regional vice president, Northern Europe and Russia/CIS. “The global environment continues to be in a state of flux, with only one thing certain – that everything is changing. Just under half of UK businesses are not using any form of big data analytics, and those that are will sometimes be using it infrequently in just one or a few areas of the business. Less than one in three have adopted IoT."
“This report illustrates the considerable impact over the coming years of more organisations embracing big data and IoT to improve decision-making that affects efficiency, risk management and new business opportunities. Among the sectors that are set to benefit most over the next few years will be manufacturing, professional services, retail banking and telecoms," he added.

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