Study: Enterprises Want IoT Solutions, They’re Just Taking Their Time
Let us all take a minute, bow our heads and give thanks for the Internet of Things. Whatever IoT means to your company, VARs should think of it as a fantastic marketing phrase that draws attention and generates opportunities around the latest phase of the IT evolution they’ve played an integral role in for the last 20 years.
Let us all take a minute, bow our heads and give thanks for the Internet of Things.
Whatever IoT means to your company, VARs should think of it as a fantastic marketing phrase that draws attention and generates opportunities around the latest phase of the IT evolution they’ve played an integral role in for the last 20 years.
Think of all the hype as free advertising that promotes the skills and services VARs have contributed in making the emerging IoT ecosystem possible. But despite the noise and excitement, enterprise IT decision makers say they will take a “deliberate” approach to choosing and implementing IoT solutions.
That’s the conclusion of a new survey Red Hat (RHT) conducted with 565 IT decision makers from a variety of businesses and organizations, including Fortune 500 companies and local governments. The response shouldn’t come as a surprise to VARs who are used to the typically long sales cycle and drawn-out buy-in that characterizes most major IT implementations.
The numbers, though, paint a picture that can be viewed positively by VARs who are trying to develop the divisions and practices needed to deliver the new technologies. Only about 12 percent of respondents, for example, are now rolling out some type of IoT solution.
“Far from being a negative, this mirrors the typical enterprise adoption of new technologies, with project rollouts often taking far longer than they may in smaller organizations or in the consumer world,” the report states.
The remaining 88 percent of those companies represents a huge number of potential customers who require and seek the guidance and hand-holding VARs bring to the table. Since the game is still in its early stages, VARs have the time they need to develop the right vendor partnerships and product mixes, something many have had difficulty doing in building practices, such as cloud computing, that are integral to IoT solutions, according to a recent report from ZS Associates.
“This timeline can sometimes be sped up with the right technology, as IT decision makers and buyers will often hold on project implementations until they know for sure that a given product will meet their needs …” the Red Hat survey confirms.
But that doesn’t mean there’s time to waste. About 43 percent of respondents feel IoT is immediately important to their business, according to the survey. Another 46 percent are either exploring, evaluating, experimenting and/or prototyping IoT technologies.
The buzz around IoT has generated more than empty hype. It has helped IT help decision makers envision ROI fueled by the new solutions. About 65 percent of respondents see the value IoT can bring through operations improvements, while 51 percent see value through process optimization. McKinsey recently outlined the value IoT will bring to specific industry segments in this report.
In a tip of the hat to Red Hat, 86 percent of the respondents also said that open source solutions would play a role in their IoT projects.
“While this survey shows that enterprise IoT is behind the consumer world in the hype cycle, it’s important to note that this is not due to a lack of interest or understanding of IoT’s benefits,” Red Hat states. “Rather, it’s another symptom of enterprises being thorough with technology buying decisions, as well as actual implementations.”
Some things just don’t change.