Enterprises Worldwide Show Renewed Interest in IoT

Rhea-AI Summary

ISG Provider Lens™ report highlights a global resurgence in interest for IoT and IIoT among enterprises seeking better management and security for their systems. The report indicates that while the pandemic initially slowed IoT investments in 2020, sectors like manufacturing have resumed outsourcing contracts and focusing on intelligent operational expenses with clear ROI. Cybersecurity remains a key concern, prompting companies to engage service providers. The report evaluates 30 providers, naming leaders like Atos, Capgemini, and IBM.

Positive

• Growing enterprise interest in IoT and IIoT solutions.
• Recovery in IoT outsourcing contracts in manufacturing and other sectors.
• Increased focus on intelligent operational expenses with clear ROI.
• Adoption of cybersecurity solutions integrated into IoT systems.

Negative

• Pandemic-related impacts on hardware investments which could hinder growth.
• Challenges in managing the transition to 5G networks due to inconsistent spectrum availability.

ISG Provider Lens™ report finds companies turning to service providers to help them better manage and secure their IoT systems

STAMFORD, Conn.--(BUSINESS WIRE)-- Enterprises across the globe are showing renewed interest in the Internet of Things (IoT) and the Industrial Internet of Things (IIoT), and they are looking to service providers to help manage and secure their installations, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2021 ISG Provider Lens™ Internet of Things – Services and Solutions Global Report finds a growing interest in using the IoT in several ways, such as improving the efficiency of the supply chain, running shop floor equipment, and powering autonomous vehicles.

“There is a clear resurgence of interest from enterprises around the world in the IoT,” said Gaurav Gupta, partner and global leader, ISG Digital Engineering. “Most large enterprises, having chosen their IoT platforms by now, are interested in scaling their IoT initiatives globally.”

While the pandemic slowed overall investment in the IoT in 2020, the manufacturing industry, for one, increased its spending on IoT outsourcing contracts, the report says, in line with strong growth in smart manufacturing initiatives before the pandemic.

Gupta noted that, within the realm of smart manufacturing, the pandemic impacted hardware and other capex-related IoT investments, but “intelligent op-ex investments with a clear ROI, such as asset management and predictive maintenance, are gaining steam.”

Beyond manufacturing, spending on IoT outsourcing contracts began to rebound across more industries in the fourth quarter of 2020, the report notes.

In addition to pandemic-related impacts, many companies rolling out the IoT are concerned about cybersecurity, and they’re turning to service providers to help them protect the data flowing over IoT systems, the report says.

IoT service providers are building security services into their consulting and managed services engagements, especially those focused on IT and operational technology (OT) convergence, the report adds. Many security services cover the entire IoT ecosystem, from the edge to the cloud to on-premises systems.

Convergence of IT and OT systems is another major challenge for enterprises deploying IoT systems, the report says. The use of legacy systems in both worlds can slow down integration and mobility. Service providers are combining their industry expertise and IT proficiencies to develop converged systems.

Service providers are also helping enterprises deploy artificial intelligence in IoT systems, including on the edge, the report adds. AI can help IoT systems better process large volumes of data, and service providers often offer customized AIOps systems for specialized customer needs.

The report sees a growing interest in 5G networking technologies as a way to connect IoT networks, but it notes spectrum availability is inconsistent across the globe. In some cases, mobile network operators may need to shut down older networks to make way for 5G.

Enterprise clients, especially those with deployed IoT fleets and devices, will need to manage the selection of replacement technologies when mobile operators shutter older services, the report recommends. Shuttering events will happen on a per-country, per-operator basis, which makes them difficult to manage.

The 2021 ISG Provider Lens™ Internet of Things – Services and Solutions Global Report evaluates the capabilities of 30 providers across three quadrants: Artificial Intelligence on the Edge, IoT Endpoint Security and IT/OT Tech Data Convergence.

The report names Atos, Capgemini and IBM as Leaders in three quadrants and Cognizant, DXC Technology and Siemens as Leaders in two. Accenture, HARMAN, HCL, HPE, Infosys, L&T Technology Services, Tech Mahindra, Verizon and Wipro are named Leaders in one quadrant.

In addition, NTT Data was named a Rising Star—a company with a “promising portfolio” and “high future potential” by ISG’s definition—in two quadrants. HCL and Orange Business Services were named Rising Stars in one quadrant.

Customized versions of the report are available from Atos and L&T Technology Services.

The 2021 ISG Provider Lens™ Internet of Things – Services and Solutions Global Report is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Germany, Switzerland, the U.K., France, the Nordics, Brazil and Australia/New Zealand, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210908005778/en/

Press Contacts:



Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com



Erik Arvidson, Matter Communications for ISG

+1 617 755 2985

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What did the ISG Provider Lens report find regarding IoT?

The report indicates a renewed interest in IoT among enterprises, particularly for improving supply chain efficiency and security.

Which companies were named Leaders in the ISG Provider Lens IoT report?

Atos, Capgemini, and IBM were named as Leaders in three quadrants.

How has the pandemic affected IoT investments according to the ISG report?

While the pandemic initially slowed investments in 2020, there has been a rebound in IoT outsourcing contracts.

What are enterprises concerned about when implementing IoT systems?

Enterprises are primarily concerned about cybersecurity and the integration of IT and OT systems.

What is the significance of 5G in the context of IoT?

5G networking technologies are crucial for connecting IoT networks, but spectrum availability issues present challenges.