Those resellers wondering where the revenue might come from from the Internet of Things (IoT) should look towards security and data management as areas that will provide the largest revenue opportunities.
Talk about IoT has started to gather pace this year with expectations that it will be worth millions but it has not always been clear where the revenue will come from for the channel.
According to Beecham Research security and data management are the two places that make the best targets for resellers despite things being in their relative infancy on the data analytics front.
“Due to the growing complexity of IoT applications and trend to consumer-driven, multi-service environments such as smart cities, cars and homes, there is a growing need to manage edge devices such as sensors, switches, smartphones and tablets, connected using a variety of short range wireless and fixed line technologies,” said Saverio Romeo, principal analyst at Beecham Research and author of the report.
"With this pace of change, companies will increasingly rely on outsourcing and we expect that revenues from device authentication, device management, data management, billing and security will exceed $3bn by 2020. And out of these, we see security and data management services generating some $1.8bn alone," he added.
“While many market players still see security as a cost rather than a business opportunity, this is changing and we see IoT security providers offering high-value, end-to-end security to service and application providers,” added Romeo.
The research house also anticipates there being opportunities for those channel players that can provide a range of enablement services that include authentication, device management and billing/charging.
"Service Enablement Services, usually configured as cloud-based platform services, cover all enabling services for IoT solutions,” said Robin Duke-Woolley, CEO at Beecham Research. “We see many changes in requirements for these enabling services in the IoT market now compared with just a few years ago."