the market of iot platforms dominated by complexity … · challenges when selecting the right iot...

© PAC GmbH 2019

THE MARKET OF IOT PLATFORMS –DOMINATED BY COMPLEXITY AND FAST EVOLUTION

PI World Gothenburg 2019

Arnold Vogt, Principal Consultant IoT & Industry 4.0/Industrial IoT

© PAC GmbH 2019© PAC GmbH 2019

Together, we are the leading European research and consulting firm in the fields of digital transformation, software and IT services

September 20192

Founded in 1973, CXP is a research

and consulting firm focusing on

enterprise software solutions expertise

for IT users in French-speaking

countries.

Founded in 1976, PAC became the leading European-based

market analyst firm delivering focused and objective responses

to the growth challenges of software & IT services vendors

worldwide.

Founded in 2004, Ardour Consulting is a

well-established advisory firm in Europe,

helping IT organizations of large European

firms in the fields of IT strategy, IT

sourcing, and IT governance.

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© PAC GmbH 2019September 20193

Introduction

Why are IoT platforms helpful?

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Basic IoT stack

September 2019 PI World Gothenburg4

Digital

factory

Connected

vehicles

Smart

transport

Smart

cities

Smart

home &

buildings

Digital

health

Smart

energy &

resources

Smart retail

& CPG

IoT applications

IoT platforms

IoT infrastructure

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IoT platforms reduce complexity through integrated capabilities, which gives you more agility to realize use cases


IoT platforms are not easy to categorize,

as they:

• pool a large

number of

different functionalities

• many functional

building blocks

are not new

Functional aspects of IoT platforms

IoT

ap

plic

atio

n

mana

gem

en

t Application integration

Application development

Data analytics & AI

Event processing

Data visualization

IoT

devic

e

mana

gem

en

t

Device provisioning

Device connectivity

Remote SW updates

Remote controlE

dge Edge analytics & filtering

Embedded SW

Why is their relevance increasing? Tipping

point expected:

• Integration of

standard building

blocks makes IoT quick and easy to

implement

• Increasing cloud

acceptance


How to identify the right platform?

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“The best approach to IoT are individual development teams for the

fast development of different use cases on a common platform.”

Kieran O'Sullivan,Director, Digital Transformation Delivery, Pfizer

PI World Gothenburg

One IoT platform for everything would be perfect

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Identifying ONE IoT platform that covers all IoT use cases is a challenge


Challenges when selecting the right IoT platform

Finding a partner for

sustainable business

relations

• Trust

• Financial stability

• Reliability

• Product roadmap &

innovation

• Partner ecosystem

Finding an

easy-to-use

platform

(fully integrated

if possible)

Avoiding vendor

lock-in

All IoT platforms

have their sweet

spots and

limitations

Identification of ONE IoT

platform that covers and

integrates all IoT use cases

• Today

• In the future

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Overview of the most relevant evaluation criteria


Market strength

Market position & client relationship

Competence

Strategy Breadth of solution Quality of the solution

Go-to-market

The approach to “survive” the consolidation process:

• strategic focus

• stringent activities

• partners

Quantitative platform capabilities:

• features

• new functions

• use cases covered

Qualitative platform capabilities:

• USP

• user-friendliness

• maturity level

• client references

Setting up acompetitive market approach:

• partner ecosystem

• IoT labs

• starter kits

• training & test

Market positioning and power of enforcement:

• financial strength

• market coverage

• partners

• client access

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Comparing features & functions is no longer sufficient – in a fast-paced world, the speed of innovation is even more important


Solution capabilities todaySolution capabilities

in future

Yesterday Today Tomorrow

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Anticipating future capabilities is the main challenge today –ecosystems are a key enabler


Breadth & quality of the solution

Strategy

Market strength

GTM & ecosystem

Yesterday Today Tomorrow


Market segmentation

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Segmentation of the current IoT platform market


Digital

factory

Connected

vehicles

Smart

transport

Smart

cities

Smart

home &

buildings

Digital

health

Smart

energy &

resources

Smart retail

& CPG

IoT applications

IoT platforms for rapid application deployment

IoT platforms for analytics applications

IoT platforms for device

management


development

IoT infrastructure

IoT platform segments for

non-developers

IoT platform segments for developers


New trends in the market

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Increasing consolidation of existing market segments


Digital

factory

Connected

vehicles

Smart

transport

Smart

cities

Smart

home &

buildings

Digital

health

Smart

energy &

resources

Smart retail

& CPG

IoT applications

IoT application management IoT application management

IoT device management IoT device management

IoT infrastructure

IoT platforms for non-developers IoT platforms for developers

© PAC GmbH 2019

Newly emerging segments in the context of IoT platforms


Digital

factory

Connected

vehicles

Smart

transport

Smart

cities

Smart

home &

buildings

Digital

health

Smart

energy &

resources

Smart retail

& CPG

IoT applications




management


development

IoT infrastructure

IoT platforms based on open source

IoT platforms with application marketplaces (horizontal & vertical)

IoT data

exchange and

monetization

platforms

AR platforms

for connected

workers


Impact on the existing vendor landscape

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Intensifying competition leads to market exits


Relevant acquisitions in the IoT platform space (2014-2018):

• 2018: Munich RE buys relayr

• 2018: Siemens buys Mendix

• 2018: ARM buys Stream Technologies

• 2018: Google buys Xively from LogMeIn

• 2017: KUKA buys Device Insight

• 2017: Software AG buys Cumulocity

• 2016: SAP buys Plat.One

• 2016: Microsoft buys Solair

• 2015: AWS buys 2lemetry

• 2015: Autodesk buys seecontrol

• 2014: PTC buys ThingWorx

Market exits (2018-19)

• Windriver

• Samsung

• (C3 IoT)

• (GE Digital)

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Vendors are repositioning in new areas


Digital

factory

Connected

vehicles

Smart

transport

Smart

cities

Smart

home &

buildings

Digital

health

Smart

energy &

resources

Smart retail

& CPG

IoT applications




management


development

IoT infrastructure

IoT platforms based on open source

IoT platforms with application marketplaces (horizontal & vertical)

IoT data

exchange and

monetization

platforms

AR platforms

for connected

workers


IOT PLATFORMS FOR INDUSTRIAL APPLICATIONS

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© PAC GmbH 2019

Key evaluation criteria


Technology-related:

• Real-time data management capabilities

• Out-of-the-box connectivity to many different industrial devices

• Open marketplace with many industrial applications for different use

cases

Ecosystem-related:

• A strong ecosystem of application development partners (this gives

users fast and easy access to diverse and innovative applications,

enabling them to boost the operational efficiency of their connected

devices)

Growth-related :

• Strategic focus and activities in the last 12 months (partner strategy)

• A strong existing client base (this attracts new application development

partners)

© PAC GmbH 2019

OSIsoft evaluation


Technology-related:

• Real-time data management capabilities

• Out-of-the-box connectivity to many different industrial devices

• Open marketplace with many industrial applications for different use

cases

Ecosystem-related:

• A strong ecosystem of application development partners (this gives

users fast and easy access to diverse and innovative applications,

enabling them to boost the operational efficiency of their connected

devices)

Growth-related :

• Strategic focus and activities in the last 12 months (partner strategy)

• A strong existing client base (this attracts new application development

partners)


Any questions?

PI World Gothenburg


Thank you!

PI World Gothenburg

the market of iot platforms dominated by complexity … · challenges when selecting the right iot...

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