July 28, 2016 | Authored by: Vindicia Team Blogs
IoT networks should emphasize value
The Internet of Things continues to expand, and several telecommunications companies are working to make it easier to adopt these products and integrate the IoT into daily business operations. As the MIT Technology Review discussed, many countries around the world are creating nationwide wireless IoT networks. Recently, the Dutch company KPN finished constructing its network in the Netherlands. This IoT structure has lower operational costs and energy requirements than cellular networks and connects sensors from numerous public institutions, such as the Port of Rotterdam and Schiphol Airport.
One of KPN's biggest concerns, according to MIT Technology Review, is the cost of building such an extensive infrastructure. A company executive told MIT Technology Review that KPN has contracts to link 1.5 million IoT devices, although not all of them are currently connected. KPN plans to use a subscription billing model to charge for each connected device based on its data requirements.
Other companies face similar issues. The French startup SigFox has an IoT network that spans 22 countries, covering 340 million people. According to SigFox's vice president of communications, the company plans to cut its subscription management prices as low as possible as fast as it can. This would bring early IoT adopters to its infrastructure and encourage new users to purchase IoT devices.
Businesses say IoT is crucial for success
Thankfully for these and other telecommunications companies, businesses realize the benefits of IoT. If these telecom organizations can keep the cost of subscriptions low, they'll likely see more enterprises join their networks.
To understand exactly how businesses view the world of IoT, Vodafone conducted and released its fourth annual IoT Barometer Report. The survey compiles data and opinions from companies around the world, including Brazil, South Africa, South Korea, Japan, India and the U.S. One of the most notable statistics from the survey was that 76 percent of enterprises believe IoT is a key component that will lead companies to success in the future. Sixty-three percent expect to have IoT projects in place by the end of 2017.
Early adopters of IoT devices are happy with their results, using the technology to automate their supply chains, monitor machines remotely, lessen the costs of operations, build new products and more. These companies note that IoT devices improve the company experience, and more than half use the technology for large-scale business transformations. Corporations also noted that IoT improves the customer experience. In fact, this was the most commonly reported benefit, with better productivity falling in second place.
On average, companies that currently use IoT products saw a 20 percent improvement in cost and asset utilization, system uptime and revenue. This could be why businesses spend, on average, a quarter of their information technology budgets on IoT.
If telecom companies want to encourage more businesses to adopt IoT technology, they should assert how many current businesses find value in this service. IoT provides real-time feedback and information, allowing companies to remain competitive on a global scale.
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