On the 26th February we published a White Paper entitled ‘Hyperscale IoT Connectivity could save enterprises 28% of their global connectivity cost’. In this article I explain why this hyperscale approach is so important and how it can save enterprises over $100 billion in operational costs.
The starting point for the White Paper is the current state of IoT connectivity. A decade ago, the ways in which global connected devices were supported was relatively simple but has changed immeasurably in the last decade with the arrival of new technologies, increasing complexity in regulation and the shift to the cloud, to name but three. Previous blog posts including this one have explored this topic in some detail.
The way in which connectivity is provided must keep up. That’s why we’re advocating a new hyperscale approach to connectivity which meets the new demands for localization, security, cloud integration and compliance.
For this reason, we advocate for a connectivity solution with a number of particular characteristics that make it more suitable for IoT in the 2020s. Firstly they must be local, which includes localising connectivity using eSIM/eUICC, as well as data management; local compliance is the key. It must also be adaptive to different architectures including cloud and edge, as well as quick to deploy into new territories. Thirdly it needs to be secure, extending the enterprise’s security perimeter out to the edge device. Finally, it must be collaborative and interoperable between the diverse members of the IoT ecosystem. We term solutions that meet these criteria ‘Hyperscale IoT Connectivity’.
The report outlines USD117 billion in cost savings that can be made by enterprises over the next decade by using this Hyperscale approach. The White Paper demonstrates how critical it is for enterprises adopting IoT to make the right choices in their connectivity provider. Decisions around connectivity have focused too much on shaving a few cents off data rates. That misses the point that choosing wisely in a connectivity solution can accelerate time-to-market, guarantee compliance, ease integration with cloud platforms and help in numerous other ways that benefit the deploying organisation out of all proportion of the cost of the connectivity.
The aim with the White Paper is to focus the attention of would-be customers on the need to consider every aspect of their IoT project when making their choice of connectivity partner. Bad decisions, by selecting a connectivity solution that will not scale to the demands of the 2020s, will end up costing adopters over $100 million.
In total we identify eleven main ways in which enterprises will benefit from selecting a Hyperscale-friendly solution. These range from greater supply chain efficiency, courtesy of using eSIM, through to more streamlined device-to-cloud integration giving a superior and more consistent global deployment experience. Other benefits include faster time-to-market for companies deciding the move into overseas markets, and superior security mitigating the cost of layering on additional measures. Further details can be found in the White Paper.
On average, our analysis tells us that enterprises can save costs equivalent to 28% of their connectivity spend. This figure hides a lot of variation. In the manufacturing vertical, for instance, the cost savings over the next decade could more than exceed the total spent by the sector on connectivity.
The White Paper is available to download here, including more details on all of the topics discussed in this article, as well as a description of the methodology used. The report was compiled in collaboration with Telia which has a micro-site dedicated to the associated topics: The Future of Global IoT. Also included in that site is a link for registering for a webinar to be held on the 24th March focused on this key issue.