The Internet of Things (IoT) is growing at a phenomenal pace. Estimates about how many connected devices will be in operation by 2020 range from 25 billion to 75 billion. Even conservative analysts expect the amount of connected devices to quintuple over the next five years.
Moreover, as devices proliferate, so will the amount of data produced. IDC’s Digital Universe study forecasts that annual data production will go from 4.4 zettabytes to 44 zettabytes by 2020. Ben Parker of Guavus, said: “Whichever estimate turns out to be closest to the mark, the IoT is clearly set to impact virtually every industry over the coming years.”
For Communication Service Providers (CSPs) the IoT represents an opportunity to open new revenue streams. This is a valuable lifeline at a time when traditional voice and data revenues continue to be eroded by OTT services such as WhatsApp and all-you-can-eat data plans. CSPs should be looking at how they can use their role as connectivity providers to establish themselves as the conductor that orchestrates the IoT in a harmonious symphony. However, in reality the unique nature of the IoT means that CSPs face several critical challenges in order to achieve this aim.
The Orchestra of data flows – How the IoT will work
Whilst a lot of focus has been given to ‘smart homes’ and other consumer-facing applications of the IoT, the major game-changers will be behind the scenes in the ‘industrial internet’ powering back-office business functions. For example, supply chains are set to become a whole lot smarter.
While crops still have to be planted and will take the same time to grow as ever before, the smart supply chain will save farmers hours of labour when the tractor automatically orders new batches of seed for itself because it’s running out. Farming equipment will collect data on the temperature, humidity and soil composition, crunch the numbers and produce an assessment on the ideal times for preparing, planting and harvesting crops for the farmer.
Then, moving down the chain, the IoT will affect the way the farmer’s products are transported around the world. Shipping containers will be able to tell handlers if the temperature conditions need to change as well as inform endpoint receivers exactly how long they have been in transit, whether they have been handled correctly and what’s the most accurate sell-by date of the produce inside the container.
Conducting the data flows
Unquestionably the amount of data generated by sensors in the industrial internet is set to skyrocket in correlation with the number of devices being connected. While this type of data is not as intensive as traditional customer usages such as video streaming; the constant static nature of IoT sensors does present several unique challenges for which CSPs must be prepared. Firstly, they need to work out what it will do to the network-machine created data is very different from consumer created data in terms of variety, frequency and volume. So they need to assess the cost of supporting a subscriber, as opposed to a machine on the network. Secondly, a significant number of devices in the IoT may well be placed in less-populated areas, so CSPs need to make sure that there is extra capacity in areas that may not previously have been a priority. They’ll also need to consider how customers will be charged for IoT connectivity.
Provided that these barriers are successfully negotiated, the ability to benefit from the IoT comes through being able to harness the data flows and then derive operational insights to provide contextual, value-added services to data-hungry enterprises. Carriers can move up the value chain by offering Analytics-as-a-Service. For this to be viable, CSPs will need streaming analytics layered on top of the data flows that are able to gather and process the vast amounts of incoming sensor data in a timely manner.
Furthermore, by strategically deploying sensors on their own network endpoints, telcos will be able to gain visibility into the differences in data flows from various sources. Again, analysing this data, will provide operational intelligence that enables them to revamp their tariffs and create sensible, flexible billing plans for business customers as well as identifying and eliminating inefficiencies in their network. One company in the US has already used streaming analytics on their network data to save around $50m on technician callouts by anticipating which customers will be affected by issues.
CSPs calling the tune
The nature of data flows is almost certain to change with the advent of the IoT. The dramatic proliferation of devices and data will present new challenges for connectivity providers, both internally and externally. Internally, they must make sure that their own information is as comprehensive and accurate as possible around how their network is being used and that they are able to apply advanced analytics in order to optimise business models.
Externally, CSPs must be able to provide added value to companies beyond just the connectivity of devices and this will come through layering advanced analytics onto the data flows from industrial sensors to divine actionable insights that are easily relatable to all business stakeholders.
The providers with the greatest ability to offer this service will place themselves firmly at the heart of the value-chain, becoming the indispensable conductors of the IoT.
By Ben Parker, principal technologist at Guavus
