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 Channel Futures

New/Changing Channel Programs


Is It Time to Channel the Internet of Things?

  • Written by Channel
  • October 30, 2014
That perfect storm of opportunity appears to be building quickly for the Internet of Things (IoT). The revenue potential for the estimated 50.1 billion connected devices by the year 2020 is a staggering $1.9 trillion globally according to Gartner Research.

Nancy HammervikBy Nancy Hammervik

In the marketing and technology fields, buzz is money. While some companies have mastered that philosophy, such as the company with an “i” at the beginning of every offering, others struggle with the concept. Buzz is an arrival of sorts, when the discussion kicks into full gear about a certain product or service. Thanks to social media platforms and the latest viral campaigns, these topics spread quickly today, and the companies that learn to leverage that power often profit the most.

That perfect storm of opportunity appears to be building quickly for the Internet of Things (IoT). The revenue potential for the estimated 50.1 billion connected devices by the year 2020 is a staggering $1.9 trillion globally according to Gartner Research. That means a machine count increase of more than 300 percent in the next six years along with all the “value add” on the backend that makes it a worthwhile business investment. With the channel’s unique solution building capabilities, as well as its professional services creativity, the IoT presents a formidable future growth option for our segment of the tech community. That doesn’t mean it will be easy or offer a solid ROI for providers taking the early initiative.     

Some SMB organizations are just beginning to research their “connected options,” even though many are already installing the infrastructure needed to drive these systems. Early adopters are already figuring out how creating links and applications with computers and mobility devices will speed and otherwise benefit their operations. In many cases, solution providers are either assisting in those endeavors or leading the charge. What was previously considered wishful thinking seems to be turning into real channel opportunities.

According to the latest CompTIA Research brief, “Sizing Up the Internet of Things,” slightly more than half (51 percent) of businesses believe these technologies and solutions justify the hype. While that leaves a formidable-sized group waiting for a more concrete business case for IoT technologies, the rapidly increasing support within the vendor community will surely drive interest and applications.

Becoming an IoT Channel Expert

As more organizations increase their reliance on these machine-to-machine communications to eliminate errors and help improve delivery methods, they’ll likely need to improve their infrastructure and networks. Demand for that expertise is sure to escalate, as will the need for integrators and those with the sills to implement and support   

Many of the core technologies required to drive these connected systems are already here, including wireless networks, RFID and barcode readers, temperature sensors and other measurement systems. Auto-ID-specialists have been offering a variety of these machine-to-machine solutions for years, especially in the healthcare and manufacturing communities, but that’s just the first step towards the IoT. As with any other web-enabled technology, each device and the networks they connect through have to be properly secured and protected. Some customers business may start with commercially supplied systems and bring in experts who can customize them to meet their own, specific business needs.     

SMB organizations, as usual, will look to solution providers for their expertise, direction, support and other capabilities. Since the business benefits of these technologies are still somewhat ill-defined, establishing a viable IoT practice is not going to be easy. It will require valuable time and significant resources, not to mention a tremendous amount of patience.  

Nancy Hammervik is senior vice president, industry relations, for CompTIA.

Tags: Agents Business Models IoT New/Changing Channel Programs

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